Tournigan Energy Ltd. (TVC: TSX-V; TGP: Frankfurt) is pleased to report that it has completed the next phase of its process to form a strategic alliance with AREVA, the French nuclear energy and uranium mining conglomerate, and acquire the Scandinavian uranium properties from Mawson Resources Ltd.. Today it has completed an exclusive non-brokered private placement of 14,285,714 units (the “Units”) at a price of $0.07 per Unit to raise gross proceeds of $1,000,000 with Compagnie Française de Mines et Métaux, an affiliate of AREVA. Each Unit consists of one common share and one non-transferable common share purchase warrant, with each warrant entitling AREVA to purchase one additional common share in the capital of the Company at a price of $0.20 for a period of three years. The securities are subject to a hold period expiring on May 5, 2012, in accordance with the policies of the TSX Venture Exchange and applicable Canadian securities laws.
This private placement was part of a series of transactions announced on December 7, 2011. In addition, Tournigan has entered into a Technical Services Agreement with AREVA whereby AREVA will perform a work program comprising metallurgical and environmental test work to be part of the Kuriskova feasibility study which will commence early in 2012.
On closing this placement AREVA owns 6.9% of the issued common shares of Tournigan. AREVA owns approximately 9.1% of the issued common shares of Mawson and upon Tournigan completing the purchase of Scandinavian uranium properties from Mawson by the issuance of 53,639,848 common shares to Mawson and Mawson subsequently distributing those shares to its shareholders on a pro-rata basis AREVA will own 7.3% of the issued common shares of Tournigan, with warrants representing an additional 3.1% and a preemptive right to participate in future financings.
Concurrent with the closing of the private placement the board of directors increased its size to nine members and appointed Andréas Mittler, Vice President, Expertise and Projects Department of AREVA Mines since April 2011, and member of the AREVA Mines Executive Committee. Mr. Mittler is a mining engineer and holds a masters degree in science and executive engineering from the Ecole Nationale Superieure des Mines de Paris in 1986. His core competencies are in mine start-up and management. Mr. Mittler has spent most of his professional career of mining of AREVA. He was underground mine Manager in Jouac (France), he worked as the manager of production for COMUF (Gabon), then as production manager for gold mining in Australia, before joining SOMAIR and later COMINAK (Niger) as General Manager. In 2009, he became mining projects manager of oil sands for Total in Canada.