EUROPEAN URANIUM RESOURCES LTD ("EUU")
BULLETIN TYPE: Property-Asset or Share Disposition Agreement
BULLETIN DATE: June 25, 2014
TSX Venture Tier 1 Company
TSX Venture Exchange has accepted for filing a binding letter of intent (the "LOI") dated June 16, 2014 between European Uranium Resources Ltd. (the "Company") and Forte Energy NL ("Forte") whereby Forte will earn a 50% interest in the Company's Slovakia uranium projects. The interest will be held through ownership of 50% of the Company's currently wholly-owned subsidiaries, Ludovika Energy and Ludovika Mining which hold the mineral licenses comprising the Kuriskova and Novoveska Huta uranium projects (the "Properties").
In order for Forte to earn its 50% interest in the Properties, Forte must pay an aggregate of $500,000 cash and incur an aggregate of $3,500,000 in work expenditure commitments over a 10 year period. Forte can forfeit its 50% interest in the Properties to the Company with no further obligation any time after it has paid the Company $500,000 and funded the first year minimum work commitment of $350,000. The expenditures can be accelerated by Forte at Forte's election. If the parties each agree to sell their 50% interest to a third party, then Forte will pay EUU the difference between $3,500,000 and expenditures made to date.
The transaction is arms-length.
Further information can be found in the Company's news release dated June 16, 2014.
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