TORONTO, ONTARIO--(Marketwire - Oct. 24, 2011) - Forsys Metals Corp. ("Forsys" or the "Company") (TSX:FSY)(FRANKFURT:F2T)(NSX:FSY) is pleased to announce that it has entered into a purchase agreement with Etherlin Management Corp ("Etherlin") pursuant to which the Company will acquire from Etherlin its indirect 30% equity interest in the Namibplaas Uranium Project ("Namibplaas") in Namibia. The acquisition is in exchange for the issue by the Company of 13,000,000 new common shares in the capital of the Company and 2,000,000 common share purchase warrants of the Company. Upon completion of the acquisition, Forsys will have a 100% equity interest in Namibplaas.
The Company is also pleased to announce that it has commenced phase two of its 2011/12 drilling program at Namibplaas with an approved budget of C$2,500,000. The Company is targeting an updated compliant NI 43-101 Technical Report in the third quarter of 2012.
Forsys' Chief Executive Officer Marcel Hilmer said, "By acquiring the remaining 30% interest in Namibplaas, Forsys is able to benefit fully from the advanced exploration program and has full control over the project consolidation assessment with the already 100% owned Valencia Uranium Project. The acquisition is a significant step towards a consolidated Valencia/Namibplaas uranium project with the aim of completion of an updated Feasibility Study in 2012 incorporating increased resources, lower capital and operating costs and improved overall project economics. The maiden resource statement for Namibplaas released in September 2011 confirmed the project's potential and we are pleased to have now commenced a second phase 40,000 metre percussion drilling program at Namibplaas."
Acquisition of 30% Interest in Namibplaas Uranium Project
Pursuant to the purchase agreement, the Company will acquire 100% of the shares of Gold Enterprises Limited which owns 30% of the shares of Dunefield Mining Company (Pty) Limited which in turn owns the 100% equity interest in Namibplaas in exchange for the issue to Etherlin of 13,000,000 shares and 2,000,000 share purchase warrants, each warrant entitling the holder to acquire one share at a price of C$1.10 for a period of 2 years from the date of issue. The shares and warrants shall be issued to Etherlin in reliance on exemptions from the requirement to prepare a prospectus and shall be subject to statutory resale restrictions for a period of four months and one day from the date of issue.
Completion of the purchase agreement is conditional, among other things, on all necessary third party, regulatory or tax approvals being obtained and Etherlin satisfying its shareholder funding obligations for the 2011 exploration expenditures on Namibplass to date of C$1,030,000.
2011/12 Namibplaas Drilling Program
The Company has commenced phase two of its 2011/12 drilling program at Namibplaas with the objective of an updated compliant NI 43-101 Technical Report by the third quarter of 2012.
The aim of the 2011/12 drilling program is to complete an additional 40,000 metres of percussion drilling in a total of approximately 200 holes. This would bring the drill spacing to 40 by 40 metres and allow for completion of an update of the NI 43-101 resource statement for Namibplaas previously announced in September 2011.
About Forsys Metals Corp.
Forsys Metals Corp. is an emerging uranium producer with 100% ownership in the fully permitted Valencia Uranium Project and currently 70% ownership in Namibplaas in Namibia, Africa a politically stable and mining friendly jurisdiction. Current NI 43-101 compliant reserves at the Valencia Uranium Project are 60.5 Mlbs of U3O8. Current Measured and Indicated resources are 75.5 Mlbs U3O8 with a further 8.4 Mlbs of Inferred U3O8. Current NI 43-101 compliant inferred resources at the Namibplaas Uranium Project are 41.1 Mlbs of U3O8 at an 80ppm cut-off grade.
On behalf of the Board of Directors of Forsys Metals Corp.
Marcel Hilmer, Chief Executive Officer
Sedar Profile #00008536
This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. The following are important factors that could cause Forsys actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in uranium prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology; continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full description of these risks can be found in Forsys Annual Information Form, dated March 29, 2011, available on the Company's profile on the SEDAR website at www.sedar.com. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from anticipated in such information. These and all subsequent written and oral forward looking information are based on estimates and opinions of management on the dates they are made and expressed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
Shares Outstanding: 80,130,231
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.