NP says Forsys Metals' Valencia makes it a juicy treat

2008-11-17 05:28 ET - In the News

The National Post reports in its Saturday edition that George Forrest International Afrique SPRL is offering to buy Forsys Metals for $7 a share in cash. The Post's Peter Koven writes the bidding price is more than triple the stock's level just a month ago. "In this environment, we recognized that things were changing dramatically. And this gave shareholders an opportunity to realize value," said Forsys chief executive Duane Parnham. Forsys controls the prized Valencia uranium deposit in Namibia. While Central and Southern Africa are now hotbeds for mining exploration, they were mostly deserted when Forsys entered the country in 2000, a time when metal prices were very low. Forsys was thus able to acquire superior exploration land, and it soon became apparent it was on to something with Valencia. The project is located close to Rio Tinto's Rossing mine, one of the world's biggest uranium mines, and has similar geology. The company identified 41.4 million pounds of uranium in measured and indicated resources, and another update is due soon that will expand the resource. Mr. Parnham said whether other offers come in remains to be seen. The takeover is expected to close in February, 2009.