Aug 25, 2009 15:45 ET Forsys Terminates Arrangement Agreement With GFI
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." |