Forsys Announces Completion of $8,000,000 'Leo Fund' Portion of Private Placement
TORONTO, ONTARIO -- (Marketwire) -- 11/23/11 -- Forsys Metals Corp. ('Forsys' or the 'Company') (TSX: FSY)(FRANKFURT: F2T)(NSX: FSY) is pleased to announce the closing today of the first tranche of a private placement, previously announced on October 5, 2011, for $8,000,000, which has resulted in the issuance of 13,559,322 Class A Common Shares in the capital of the Company at $0.59 per common share to the Company's largest shareholder, Leo Fund Managers Limited ('Leo Fund') on behalf of certain of the funds it manages. Funds managed by Leo Fund now hold 31.26% of common shares.
The securities issued pursuant to the private placement are subject to a statutory hold period of four months and a day expiring on March 24, 2012.
'This investment provides the Company with additional working capital to continue its advanced exploration program at the Namibplaas Uranium Project, advance heap leach process testing at its Valencia Uranium Project, continue work on the optimization and project consolidation assessment for the Valencia and Namibplaas Uranium Projects and complete an updated consolidated feasibility study in 2012. The Company will also be able to assess various strategic investment opportunities and partnerships currently under consideration' said Marcel Hilmer, CEO and Director at Forsys.
The Company is continuing to proceed with the previously announced balance of the private placement, which is expected to close shortly.
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 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
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 www.sedar.com. 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.
Sedar Profile #00008536
(11-14)
Shares Outstanding: 93,689,553
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Forsys Metals Corp.
Marcel Hilmer
Chief Executive Officer
61 417 177 942
mhilmer@forsysmetals.com
www.forsysmetals.com
TMX Equicom
Nisha Hasan
1 416-815-0700 Ext: 258
nhasan@equicomgroup.com