FORTE ENERGY NL Forte Energy NL ACN 009 087 852
AIM Release
2 October 2015Forte Energy NL ('Forte' or 'the Company') (AIM: FTE), provides the following update for shareholders on its activities.
The Company advises that it has decided to terminate the partnership agreement entered into on 31 July 2014 with European Uranium Resources Ltd ('European Uranium'). As a result, Forte has voluntarily forfeited its 50% beneficial interest in Ludovika Energy s.r.o and in Ludovika Mining s.r.o, the Slovak entities that held the Kuriskova and Novoveska Huta uranium projects in Slovakia.
On 16 April 2015, the Ministry of Environment in Slovakia ('Ministry') announced its intention to deny the application by Ludovika Energy to extend the existing uranium licence over the Kuriskova deposit area. Ludovika Energy then made a new application over the same area to explore for Rare Earth Elements. Subsequently legal action was filed against the Ministry in relation to its decision not to grant the extension of the Uranium Permits.
Under the terms of terms of the Joint Venture agreement, Forte is required to fund all ongoing costs including overheads to maintain its interests. Given the above circumstances, the Company felt that the majority of expenditure in the medium term would be for administrative costs and not for the advancement of the project.
With the uncertainty over the new licence applications and the legal action filed against the Ministry, the Company has decided that it would be in the best interests of shareholders to cease funding the Slovakian operations and focus on other opportunities. Forte has provided funding to date of approximately CAD$450,000. Accordingly the Company has exceeded its minimum funding commitment of CAD$350,000 and has no outstanding financial obligations under the Joint Venture agreement.
The Company advises that it is also taking this opportunity to review its uranium exploration operations in West Africa. Forte currently holds a number of highly prospective uranium exploration licences with significant JORC-compliant uranium resources in the Republics of Mauritania and Guinea. However due to the prolonged downturn in the uranium market and limited funding options, Forte has not undertaken significant exploration activities on these projects for some time.
The Company holds a 75% interest in the highly prospective Olympic Domain Project in South Australia. Following a review of existing data, focused on the Horse Well Target where an exceptional drill target has been identified, plans are being finalised for an initial work
programme incorporating a low cost gravity survey followed by the completion of a single vertical core drill hole to test the gravity target at depth. This drill hole is estimated to be approximately 800 metres deep.
To date only one drill hole (HWD1) has been successfully completed into the Horse Well Target. This drill hole only tested the centre of the magnetic anomaly and importantly failed to test the margin and centre of the gravity anomaly, the most likely position for a higher grade haematite rich core.
HWD1 drilled by Western Mining Corporation in 1982 intersected 235 metres of copper mineralized drill core averaging 0.11% copper. This is an exceptional drilling result and could easily represent the peripherals to a larger mineralised system associated with the untested gravity anomaly. The Horse Well Target remains one of the few high quality magnetic and gravity anomalies that remain to be drill tested in the world class Olympic Dam copper/uranium province.
The Company advises that its current and former directors have agreed, subject to shareholder approval, to convert their outstanding directors' fees of more than A$350,000, accrued over the past 2 years, into options. The options are to be granted with a three year expiry and an exercise price of 0.05 pence per share. Full details will be included in the Notice of Meeting for the forthcoming Annual General Meeting.
In consultation with its advisors and major stakeholders, the Company is currently in discussions in relation to significant new projects that may be acquired or vended into the Company with the potential to provide substantial value to shareholders.
The Company looks forward in the near term to advising shareholders of any developments.
For further information contact: Mark Reilly, Managing Director
Forte Energy NL Tel: +61 (0) 8 9322 4071
Oliver Morse
RFC Ambrian Ltd Tel: +61 (0) 8 9480 2500 (AIM Nominated Adviser to the Company)
Forte Energy NL
Suite 3, Level 3
1292 Hay Street West Perth WA 6005
Ph: +61 (0)8 9322 4071
Fax: +61 (0)8 9322 4073
Email: info@forteenergy.com.au Web: www.forteenergy.com.au
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