Uranium explorer Forte Energy’s (LON:FTE) proposed merger with Leo Mining has been scrapped after the two companies failed to agree on changes to the original terms.
Forte said the parties could not agree on certain proposed material amendments including the withdrawal by Leo Mining of some of the assets. Leo’s main holding is a 48% stake in Canada-listed rare earth and uranium explorerMkango Resources (CVE:MKA).
Despite the merger no longer going ahead, Forte said it had received acceptances for £0.75mln worth of shares at 0.4p in a second tranche of a placing. These funds will help it look for other acquisitions, it said.
Mark Reilly, Forte Energy’s managing director, said: "We are pleased with the continued support from our shareholders and remain focused on other potential transaction opportunities which will best complement the company's growth strategy."
In a separate statement on Monday, Mkango Resources (CVE:MKA) said it had been informed by Leo Mining that the potential purchase by Forte was not going ahead.
Mkango continues work on completing its pre-feasibility study for the Songwe Hill rare earth project.