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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (42052)	8/25/2009 6:40:41 PM
From: LoneClone	Read Replies (1) \| Respond to of 194001

UPDATE 1-Forsys terminates GFI deal, demands C$20 mln payment Tue Aug 25, 2009 4:59pm EDT reuters.com * Says demanded GFI to pay C$20 mln reverse break fee * Says board reviewing strategic options Aug 25 (Reuters) - Canada's Forsys Metals Corp (FSY.TO) said it terminated its acquisition agreement with George Forrest International Afrique (GFI), as the latter failed to transfer funds necessary to complete the takeover. Forsys, a uranium developer based in Canada but with operations in Namibia, demanded C$20 million ($18.45 million) from GFI as reverse break fee, and said it was no longer in the best interests of the company to grant GFI any further extensions. The C$579 million takeover of Forsys by holding company GFI was originally supposed to close in February, but has been delayed as GFI had sought more time to gather and transfer funds. "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," Chief Executive Duane Parnham said in a statement. Forsys said its board is reviewing all strategic options including project financing, joint ventures as well as possible sale of the company to other interested parties. Shares of the company were halted Tuesday on the Toronto Stock Exchange. They closed at C$5.30 Monday. ($1=1.084 Canadian Dollar) (Reporting by Koustav Samanta in Bangalore; Editing by Pradeep Kurup)