Tournigan Energy (CVE:TVC) announced Wednesday a number of transactions in an effort to expand its Uranium presence in Europe, including the formation of an alliance with French nuclear energy powerhouse Areva SA (EPA:AREVA), and the purchase of seven Uranium properties in Finland and Sweden from Mawson Resources (TSE:MAW).
Under the terms of the Areva agreement, Tournigan will issue just under 14.29 million units to Areva, at a price of $0.07 per unit, for a total consideration of $1.0 million. Each unit will consist of one common share of Tournigan stock, and one common share purchase warrant, which entitles the holder to purchase one additional share of Tournigan common stock for $0.20, for a period of three years.
Tournigan has also entered into a technical services agreement with Areva, whereby Areva will conduct a work program on the Kuriskova property. The program, which will consist of metallurgical and environmental test work, will be used for a feasibility study for the property, expected for completion in early 2012.
Following the close of the deal, Areva will be able to elect one person to Tournigan's board of directors.
Tournigan also said Wednesday it will issue just under 53.64 million shares of its common stock to Mawson Resources, in exchange for the rights, titles, and interests in seven uranium exploration properties in Sweden and Finland. Subject to obtaining necessary approvals, Mawson will distribute the Tournigan shares to its shareholders in conjunction with the spin out of Mawson's Peruvian assets and overall reorganization of its business. Further details on the Mawson transactions will be announced by the company as soon as all the legal, tax and procedural formalities are finalized, Mawson said in a separate statement.
Areva is one of Mawson's largest shareholders.
The Mawson deal includes 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.
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, with best results including 56 metres grading 0.1% Uranium.
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.
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.
Lastly, Tournigan will acquire the Aronsjo project in Sweden, an early stage property with licenses covering 1,844 hectares.
Tournigan also said it plans to change its name to European Uranium Resources, and will complete a consolidation of its shares, on a one new for five old basis. The change will begin once the alliance and acquisitions have been completed.
On distribution of the shares, Mawson shareholders shall own approximately 20.5 percent of the restructured Tournigan, which will continue as European Uranium Resources.
"At this time, there is only one operating Uranium mine within the European Union, in the Czech Republic. Clearly, Europe has an urgent need to develop sustainable Uranium production," commented Tournigan president and CEO, Dorian L. Nicol.
"European Uranium Resources will be the key Uranium exploration company focused in Europe, the region with the world's largest per capita consumption of Uranium.
"On completion of these transactions, the company will have a greatly increased Uranium portfolio throughout Europe and will have established a strong working relationship with Areva, ranked first in the global nuclear power industry and key player in Uranium mining.
"This relationship will assist the company in the exploration and development of its properties, including the company's flagship Kuriskova Uranium project in Slovakia on which we plan to begin a feasibility study early next year."
In August, Tournigan announced it received better-than-expected assays from a geotechnical drill hole at Kuriskova. Hole LE-K-70-G, drilled in the central part of the property, returned three metres grading 0.239% Uranium, including 0.6 metres at 0.76% Uranium.
Wednesday's transactions remain subject to various regulatory approvals, the company said.