August 25, 2009 15:45 ET
TORONTO, ONTARIO--(Marketwire - Aug. 25, 2009) - Forsys Metals Corp ("Forsys" or the "Company") (TSX:FSY) (FRANKFURT:F2T) (NSX:FSY) advises that it has terminated the Arrangement Agreement (the "Agreement") dated November 14, 2008, as amended, with George Forrest International Afrique S.P.R.L. ("GFI"). Further to the Company's news release on August 18, 2009, and as of today's date, GFI has failed to transfer the funds necessary to complete the arrangement and the Company's Board of Directors (the "Board") has determined that it was no longer in the best interests of the Company to grant GFI any further extensions. Pursuant to the terms of the Agreement, Forsys has also today made a demand to GFI for payment of the CAD$20,000,000 reverse break fee.
Duane Parnham, Forsys President and CEO stated "It is disappointing that after all of the support and assistance that the Company has given to GFI over the last several months, during very difficult economic conditions, that this transaction could not finally be completed. As indicated in their recent news release on August 4, 2009 GFI had represented to the Company that unconditional funding for the transaction would be available to GFI on or about Monday August 17, 2009. GFI subsequently requested a further extension until Monday August 24, 2009 to attend to some fund transfer issues. The Company has previously agreed to a number of extensions dating back to March this year, each of which were determined by the Board to be in the best interests of Forsys shareholders. As of today however, GFI has not deposited any funds or provided evidence to the Company's satisfaction that funds are immediately available to enable GFI to complete the Agreement. We remain unclear as to the specific concerns Industry Canada has about GFI's proposed investment but notwithstanding the concerns of Industry Canada, the Company now believes it is in the best interests of shareholders to terminate the Agreement."
Duane Parnham further stated "The Board is actively reviewing all strategic options including project financing, joint ventures as well as the possible sale of the Company to other interested parties. With the currently improved global economic climate, as well as the improvements to the Project, the Board remains confident that a satisfactory arrangement for all stakeholders can be achieved."
About Forsys Metals Corp.
Forsys Metals Corp, having BEE sponsorship, is an emerging uranium producer with 100% ownership in the fully permitted Valencia Uranium Project. With an expanding reserve base, production is expected to commence in 2011 with a 15 year life of mine. Current NI 43-101 compliant reserves at Valencia are 51.4 Mlbs U308 and current Measured and Indicated resources are 70 Mlbs U308 with a further 11 Mlbs Inferred U308. Additional infill drilling is currently underway and is designed to bring the Inferred category resources into the Indicated category so they can be incorporated into a future reserve update. The Company also has an extensive portfolio of uranium exploration projects totaling over 252,000 ha located in Namibia, Africa, a politically stable and mining friendly jurisdiction.
On Behalf of the Board of Directors of Forsys Metals Corp.
Duane Parnham, President and CEO
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 Corporation. These risks and uncertainties could cause actual results and the Corporation'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 Corporation assumes no obligation to update forward looking information should circumstances or management's estimates or opinions change.
Shares Outstanding: 78,985,231
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Forsys Metals Corp.Bruce HallChief Communications Officer(905) email@example.comIn Namibia:Forsys Metals Corp.+264 61 219 firstname.lastname@example.orgWebsite: www.forsysmetals.com
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