Forte Energy NL announced that it signed a non-binding contract for the intended purchase of Leo Mining and Exploration Limited. Leominex was a registered corporation in British Islands that owned interests in Africa's uranium and rare earth elements assets' tranche. The said portfolio directly complimented Forte Energy's current projects.
The proposed purchase was anticipated to launch a corporation that was diversified and focused on bigger scale exploration in Africa. It would also create a well-balanced portfolio of uranium and REE possessions.
It was expected that the purchase would be effective through a constitutional merger under BVI law. Forte Energy would allot 95% of its own issued share capital to Leominex's stockholders. This would be around 860 million common share in Forte Energy's capital. The said shares were in accordance to 100% of Leominex's issued share capital.
It was also expected that two directors appointed by Leominex would be allowed to join Forte Energy's board of directors.
The companies were still in the process of discussing the conditions of the final agreement.
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