Forte to expand in Africa through £9m share offer

URANIUM company Forte Energy is planning to raise A$15m (£9.35m) by offering 120m shares to new and existing shareholders. The offer price will be 12.5 cents per share, a discount of 10.7 per cent to its closing price on the Australian Stock Exchange on Friday.

Allowing for expenses, the net proceeds of the placing are expected to be A$14.7m. The money raised will be used to advance the company’s uranium projects in West Africa, including an ongoing resource drilling campaign in Mauritania and a feasibility study in Guinea.

Forte said it had received commitments from institutional investors in the UK, North America, Asia and Australasia, with director Mark Reilly commenting that: “We are very pleased to have received such a high level of support from new and existing institutional shareholders for this capital raising, which was significantly oversubscribed.”