TORONTO, ONTARIO--(Marketwire - Oct. 14, 2009) - On August 25, 2009, Forsys Metals Corp ("Forsys" or the "Company") (TSX:FSY)(FRANKFURT:F2T)(NSX:FSY) updated shareholders that the previously announced transaction with George Forrest International Afrique S.P.R.L. ("GFI") had been terminated as a result of GFI failing to transfer the funds necessary to complete the arrangement on several occasions.
The Board of Directors has determined that it will now conduct a review of potential strategic alternatives (the "Strategic Review") and has hired Morgan Stanley & Co. as exclusive financial advisor to assist the Company in this regard.
The Strategic Review will examine and consider opportunities available to the Company with the objective of further enhancing shareholder value. This will include, inter alia, an assessment of financing alternatives for bringing the Valencia uranium project into production, exploring strategic alliances, joint venture opportunities, mergers, acquisitions, or a sale of all or part of the business.
The Company cautions shareholders that there is no assurance that the Strategic Review will result in any specific strategic or financial transaction and no timetable has been set for its completion. Forsys will keep shareholders updated on the strategic review process and any material developments.
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. The 2009 drilling program has been completed and is expected 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.
About Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. They serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 35 countries.
On Behalf of the Board of Directors of Forsys Metals Corp
Martin Rowley, Chairman
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.