TORONTO, ONTARIO--(Marketwire - Oct. 5, 2011) - Forsys Metals Corp. ("Forsys" or the "Company") (TSX:FSY)(FRANKFURT:F2T)(NSX:FSY) is pleased to announce that it has entered into a Subscription Agreement with Leo Fund Managers Limited ("Leo"), whereby Leo will subscribe, on behalf of certain of its funds, on a private placement basis, for new common shares in the capital of the Company at a subscription price per share equal to the lesser of 90% of the volume weighted average trading price ("VWAP") on the Toronto Stock Exchange (the "TSX") of the Company's common shares for the twenty consecutive trading days prior to the date shareholder approval is received or $0.59 for gross proceeds of C$8,000,000. The share subscription will form part of a larger private placement of new shares by the Company for gross proceeds of up to a maximum amount of C$10,000,000.
Forsys Chief Executive Officer Marcel Hilmer said, "A further investment in the Company by Leo, a leading European financial services company based in London, demonstrates the appeal of Forsys. The proceeds of this subscription provides the Company with the ability to continue its advanced exploration program at the Namibplaas project, advance its heap leach process testing at its Valencia project, continue work on its project consolidation assessment and complete an updated Definitive Feasibility Study in 2012. The Company will be also able to assess various strategic investment opportunities and partnerships under consideration."
Completion of the subscription is conditional, among other things, on the approval of the TSX and the shareholders of the Company. It is expected that the shareholder meeting at which shareholder approval for the subscription will be sought will be held in November 2011.
About Forsys Metals Corp.
Forsys Metals Corp. is an emerging uranium producer with 100% ownership in the fully permitted Valencia Uranium Project and 70% ownership in the Namibplaas Uranium Project in Namibia, Africa a politically stable and mining friendly jurisdiction. Current NI 43-101 compliant reserves at Valencia are 60.5 Mlbs of U3O8 supporting a 17-year mine life and current Measured and Indicated resources are 75.5 Mlbs U3O8 with a further 8.4 Mlbs of Inferred U3O8.
On behalf of the Board of Directors of Forsys Metals Corp.
Marcel Hilmer, Chief Executive Officer
For further information visit our website at www.forsysmetals.com.
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.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.