Forsys Signs Earn-In Agreement With B2gold Namibia
TORONTO, ONTARIO--(Marketwired - Jan. 14, 2016) - Forsys Metals Corp. (TSX:FSY)(FRANKFURT:F2T)(NAMIBIAN:FSY) ("Forsys" or the "Company") is pleased to announce an earn-in agreement ("Earn-In") has been executed with B2Gold Namibia ("B2Gold") whereby B2Gold can earn up to a 100% interest in the Ondundu Gold Project ("Ondundu") in Namibia.
The principal commercial terms of the Earn-In are as follows:
- In the first 12 months B2Gold will, as project managers, have the right to acquire 25% of Ondundu for a committed spend of US$900,000;
- If B2Gold exercise their first right, in the second 12 months they will spend a further US$1,100,000 to acquire an additional 24% interest in Ondundu (49% in total);
- If B2Gold exercise their second right, they may spend a further US$1,300,000 to acquire an additional 26% interest in Ondundu (75% in total) in the third 12 months; and
- B2Gold and Forsys may separately exercise a call or put option to transfer the balance of Ondundu for US$8,500,000 after 24 months or 36 months respectively.
Forsys Chief Executive Marcel Hilmer said the Earn-In with B2Gold will ensure that there is a strong financial commitment to develop Ondundu. "We look forward to working with B2Gold to successfully progress the Ondundu project".
About Forsys Metals Corp.
Forsys Metals Corp. is an emerging uranium producer with 100% ownership of the Norasa project that comprises the fully permitted Valencia uranium project and 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 Valencia and Namibplaas are available on the Company website.
The Ondundu Gold project is 70% owned by Forsys.
Shares outstanding: 134.9m
On behalf of the Board of Directors of Forsys Metals Corp. Marcel Hilmer, Chief Executive Officer.
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 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. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.