Forsys Metals Corp

Forsys Metals Corp

February 01, 2012 07:53 ET

Forsys to Retain Control of The Ondundu Gold Project

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2012) - Forsys Metals Corp. ("Forsys" or the "Company") (TSX:FSY)(FRANKFURT:F2T)(NAMIBIAN:FSY) is pleased to announce that it has entered into an agreement dated January 31, 2012 with Angus Mining (Namibia) Inc. ("Angus") pursuant to which Angus will relinquish all of its rights, title and interests under an Option Agreement dated July 30, 2010 with the Company that provided Angus with a right to earn up to a 75% interest in Forsys' subsidiary, Omatjete Mining Company (Namibia) (Pty) Ltd. ("Omatjete"). Omatjete holds a 100% ownership interest in the Ondundu Gold Project ("Ondundu") located in Namibia.

As consideration for this relinquishment Angus will receive a 20% carried ownership interest in Omatjete. Forsys will return to Angus for cancellation 3,000,000 common shares and 3,000,000 common share purchase warrants of Angus which Forsys received in September 2010, when the original Option Agreement was entered into. Forsys will also assume responsibility for outstanding Ondundu related payables of approximately C$300,000. The closing is subject to regulatory approvals. Forsys currently anticipates completion of the agreement to occur during February 2012.

"Retaining control of the Ondundu Gold Project will permit Forsys to reassess and update the project's economic potential. The Company will undertake a comprehensive review of the data obtained from the recent exploration activities undertaken by Angus and then determine the most appropriate way to progress Ondundu", said Marcel Hilmer, CEO and Director at Forsys.

About the Ondundu Gold Project

Ondundu comprises an area of 19,969 hectares within the region of Erongo, in Namibia. Ondundu lies within the Northern Zone of the Damara Belt that extends east from the Atlantic Ocean into north- western Botswana. This Neoproterozoic Belt is prospective for sediment-hosted gold deposits analogous to Muruntau (+100 M oz), Telfer (+26 M oz), and Kumtor (+4 M oz) and is already host to the Namibian based Navachab Mine (+4 M oz) and the Otjikoto Deposit (+1 M oz).

For more information on Ondundu, please refer to our website and the NI 43-101 compliant technical report, prepared for Westport Resources Namibia (Pty) Ltd. dated March 2010 and revised July 20, 2010 which is included in Forsys filings on SEDAR at The Termination and Settlement Agreement is also filed on SEDAR.

About Forsys Metals Corp.

Forsys Metals Corp. is an emerging uranium producer with 100% ownership of the fully permitted Valencia Uranium Project and currently a 70% ownership in the Namibplaas Uranium Project in Namibia, Africa a politically stable and mining friendly jurisdiction. Information regarding current National Instrument 43-101 compliant resource and or reserves at the Valencia and Namibplaas Uranium Project's is available on our website.

On behalf of the Board of Directors of Forsys Metals Corp.

Marcel Hilmer, Chief Executive Officer

Sedar Profile #00008536


Forward-Looking Information

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 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: 96,875,422

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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