Tournigan Energy (CVE:TVC) said Wednesday it is taking the final steps to become European Uranium Resources as it finalizes plans to bolster its Uranium presence in Europe.
As first announced in early December, Tournigan is taking the final
steps to form a strategic alliance with AREVA, the French nuclear energy
and Uranium mining conglomerate, and acquire seven Uranium properties from Mawson Resources (TSE:MAW) located in Sweden and Finland.
Part of the deal entails Tournigan changing its name to European Uranium Resources, as well as the consolidation of its shares on a five old for one new basis, with a record date of March 1, 2012.
At the opening of trading on March 1, the company will trade on the TSX Venture Exchange under the ticker symbol of "EUU".
In addition, Tournigan has entered into a technical services
agreement with AREVA whereby the French company will perform a work
program comprising metallurgical and environmental test work to be part
of the Kuriskova feasibility study.
The Kuriskova property consists of 32 square kilometres of mineral
licenses situated approximately 10 km northwest of the city of Kosice, a
regional industrial centre in Slovakia.
Under the terms of the Mawson deal, Tournigan will gain the rights, titles, and interests in seven Uranium exploration properties in Sweden and Finland.
As consideration, on February 29, Tournigan will issue 53.63 million
common shares to Mawson, and Mawson will distribute the Tournigan shares
on a pro rata basis to its shareholders. Until then, Mawson has agreed
not to exercise the voting rights attaching to the Tournigan shares, the
"We have been preparing for this re-launch of the company as an advanced stage pure-play Uranium company called European Uranium Resources Ltd with projects in Slovakia, Sweden and Finland," said Tournigan president and CEO, Dorian L. Nicol.
"Europe has 186 nuclear power plants in operation and 19 new plants under construction and there is only one operating Uranium mine within the European Union, in the Czech Republic.
"Clearly, Europe, a region with the world’s largest per capita consumption of Uranium, has an urgent need to develop Uranium production."
In Sweden, Tournigan will now hold the Hotagen district properties,
comprising four exploration claims covering 6,693 hectares in the
west-central part of the country. To date, 155 shallow diamond drill
holes have been completed on three prospects, with best results
including 56 metres grading 0.1% Uranium.
New targets have been identified up to 1 kilometre along strike from
the Klappibacken resource, Tournigan said, with the company planning to
continue exploration in the district through drill testing.
Meanwhile, located in northwest Sweden, Tournigan will acquire the
1,524-hectare Duobblon project, which as of February 2008, had a
resource estimate of 13.8 million tonnes averaging 0.029% Uranium, for 8.75 million pounds of inferred Uranium. Tournigan intends to conduct further drilling to upgrade confidence in the resource and test for possibilities of expansion.
The Kapell project, also part of the transaction, is located in
central Sweden, covers 4,379 hectares, and includes a 15-kilometre
trend. To date, three targets have been identified on the property,
including the Aviken target, where drill tests have intersected 2.65
metres at 1.54% Uranium equivalent.
Tournigan will also acquire the Aronsjo project in Sweden, an early stage property with licenses covering 1,844 hectares.
In Finland, Tournigan will acquire the Nuottijarvi project in
north-central Finland, which covers about 96 hectares. A technical
report from August 2010 estimates that the property has 2.0 million
tonnes averaging 0.074% Uranium, for 3.27 million pounds of Uranium in inferred resources.
Also in Finland, Tournigan will acquire the Riutta project, in the
southeastern portion of the country, which covers 790.2 hectares. A
total of 65 holes, totaling 6,275 metres have been drilled to date at
the asset, with best results of 11.3 metres grading 0.68% Uranium, including 3.7 metres at 1.53% Uranium, 3.6 metres at 1.1% Uranium, 0.35 metres at 9.79% Uranium, and one metre at 0.35% Uranium.
The third Finnish property that Tournigan will acquire is the newly
discovered Asento project, which comprises 37 exploration licenses that
cover 3,556.6 hectares in north-central Finland.