TORONTO (miningweekly.com) – Shares in Toronto-based Forsys Metals fell 29,5% on Friday, after the firm said it had agreed in principle to extend the closing date of a plan of arrangement in which the company will be acquired by George Forrest International Afrique (GFI).

In a written proposal, GFI said that it was still committed to the transaction, “but in the current economic climate needed the additional time to complete the financing,” Forsys said.

Forsys has agreed to extend the closing deadline to a date still to be determined, but not later than July 31. The deal was previously expected to close by March 18.

In November last year, Forsys agreed to a C$7,00 a share takeover by GFI, and the firm said on Friday the purchase price will remain the same, but the reverse break fee that GFI must pay if it breaches the arrangement, agreement will increase from C$11,4-million to C$20-million.

GFI must also provide security for the full break fee amount by March 31, Forsys said.

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 3-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 declined C$1,55 on Friday, to C$3,70 apiece by 15:59 in Toronto.

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