Forsys Announces Settlement Agreement With GFI and George Forrest
TORONTO, ONTARIO -- (Marketwire) -- 03/03/11 -- Forsys Metals Corp. ('Forsys') (TSX: FSY)(FRANKFURT: F2T)(NSX: FSY) today announced that it has reached a settlement agreement (the 'Settlement Agreement') with George Forrest International Afrique S.P.R.L. ('GFI') and Mr. George A. Forrest ('Forrest', together with Forsys and GFI, the 'Parties', or individually a 'Party').
The Parties have agreed to settle the litigation commenced against each other in the Ontario Superior Court of Justice (Commercial List) (the 'Court') under Court File No. 09-8487-00CL (the 'File'). Following termination of the Arrangement Agreement between GFI and Forsys dated November 14, 2008 as amended (the 'Agreement') as announced on August 25, 2009; GFI had filed a claim seeking damages of $150 million and a declaration that the break fee of $20 million under the Agreement was not payable. Forsys had made a counterclaim for payment of the break fee. The Parties will each dismiss their claims in the Court, and each Party will provide a release to the other Parties, forever discharging the other Parties from any claims relating to the File. The terms of the Settlement Agreement do not require Forsys to make any payments to GFI.
On behalf of the Board of Directors of Forsys Metals Corp.
Marcel Hilmer
Chief Executive Officer
For further information, visit our website at www.forsysmetals.com
SEDAR Profile #00008536
About Forsys Metals Corp.
Forsys Metals Corp. is an emerging uranium producer with 100% ownership in the fully permitted Valencia Uranium Project in Namibia, Africa a politically stable and mining friendly jurisdiction. Current NI 43-101 compliant reserves at Valencia are 60.5 Mlbs of U308 supporting a 17 year mine life and current Measured and Indicated resources are 75.5 Mlbs U308 with a further 8.4 Mlbs of Inferred U308.
Shares Outstanding: 79,930,231
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
416 367 4242
mhilmer@forsysmetals.com