TORONTO (miningweekly.com) – Shares in uranium hopeful Forsys Metals jumped 37% on Tuesday, after the firm said that George Forrest International has finally confirmed it has the financing needed to complete its acquisition of Forsys.

The deal was initially expected to close by March 18, but Forsys agreed earlier this year to extend the deadline to July 31, because George Forrest needed extra time to arrange financing for the acquisition.

Forsys agreed last year to a C$7,00 a share takeover by George Forrest, and would receive a break fee of C$20-million if GFI breached the agreement.

George Forrest said in a separate statement on Tuesday that it had signed definitive and binding investment documentation on terms that will allow the acquisition of Forsys to go ahead.

The funds will be “unconditionally available” to George Forrest within 14 days, it said.

The two companies now expect the plan of arrangement to close on or about August 17.

The transaction will be completed as soon as the funds are transferred the a depositary, under the plan of arrangement.

Forsys' Valencia uranium project, in Namibia, is fully permitted and contains measured and indicated resources of 61-million pounds.

The Valencia project is located 35 km along the geological strike to Rio Tinto's Rössing mine and 40 km north of Paladin Resources' Langer Heinrich operation.

The mine is expected to produce approximately three-million pounds of uranium a year, and Forsys was granted a 25-year mining licence for the operation in August last year.

Shares in Forsys rose C$1,76 each on Tuesday, to C$6,50 apiece by 13:37 in Toronto.

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