Both the parties could not agree changes made in proposed material terms that included the withdrawal by Leo Mining of some of the assets.
The Australian firm believes that the acquisition is not in the best interests of the Company as well as its shareholders.
Forte Energy has been raising funds of about GBP0.75m for the acquisition through a placing of 187.5 million ordinary shares that will now be used for used for general working capital purposes as well as other acquisitions.
Forte Energy managing director Mark Reilly said, "We are pleased with the continued support from our shareholders and remain focused on other potential transaction opportunities which will best complement the company’s growth strategy."
The Uranium explorer also continues other options for its growth strategy, while its management considers that the best interests of shareholders could be better served by other potential transactions.
