Forte Energy (ASX:FTE, LON:FTE) has unveiled the acquisition of a majority stake in the Olympic Domain project, close to Australia’s mega-mining projects.
It is to pay A$300,000 in cash to acquire a 75% stake in the project, nine exploration licences that span 2,162 square kilometres in the same region as the significant Olympic Dam and Carrapateena deposits.
Three years ago BHP Billiton (ASX:BHP) agreed to buy the same acreage for A$3mln, but the deal did not complete.
Forte’s new green-field venture has seen some exploration previously, with several targets already identified for further surveys and drilling.
The AIM quoted company now intends to carry out a small drilling program. Forte will be responsible for paying 100% of the costs for this program.
Forte has entered into a new funding agreement with Darwin Strategic in order to pay for the acquisition and to support the proposed work program.
It will see Forte receive £900,000 by issuing Darwin a series of convertible loan notes (each with a face value of £25,000).
Some proceeds of the funding will also provide working capital to support Forte’s progress its uranium development assets.
