Tournigan Energy (CVE:TVC) said Wednesday that it completed an exclusive, non-brokered private placement of 14.3 million units at a price of $0.07 per unit to raise gross proceeds of $1 million with Compagnie Française de Mines et Métaux, an affiliate of AREVA.
This is the latest phase in 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 (TSE:MAW).
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 which will commence early in 2012.
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.
On closing of the placement AREVA owns 6.9 percent of the issued common shares of Tournigan.
AREVA owns approximately 9.1 percent of Mawson and upon Tournigan completing the purchase of Scandinavian uranium properties from Mawson by issuing 53.6 million common shares to Mawson and Mawson subsequently distributing those shares to its shareholders, AREVA will own 7.3 percent of the issued common shares of Tournigan, with warrants representing an additional 3.1 percent and a preemptive right to participate in future financings.
Tournigan also said it has appointed Andréas Mittler, VP of expertise and projects of AREVA Mines and a member of the AREVA Mines executive committee.
Mittler is a mining engineer and his core competencies are in mine start-up and management. He spent most of his professional career of mining at AREVA.