Engineering News

TORONTO (miningweekly.com) – About nine months since uranium hopeful Forsys Metals agreed to a takeover, shareholders are still waiting for buyer George Forrest International (GFI) to finalise the cash it needs to wrap up the transaction.

Forsys issued a statement on August 4, in which it said the plan of arrangement with GFI was expected to be concluded on Monday this week.

However, the firm has now been advised that GFI is still “attending to issues relating to the transfer of funds necessary to complete the plan of arrangement and accordingly has requested a further extension of time”.

The arrangement agreement will stay in force for at least another four days, pending receipt of the funds, as GFI now expects the money will be received and confirmed by the depositary on or by August 24, Forsys said on Tuesday.

The deal was initially expected to close by March 18, but Forsys agreed earlier this year to extend the deadline to July 31, because GFI needed extra time to arrange financing for the acquisition.

Forsys agreed last year to a C$7,00 a share takeover by GFI, and would receive a break fee of C$20-million if GFI breached the agreement.

GFI said on August 4 that it had signed definitive and binding investment documentation on terms that would allow the acquisition of Forsys to go ahead.

Forsys' flagship asset is the Valencia uranium project in Namibia.