TORONTO (miningweekly.com) – Uranium hopeful Forsys Metals is in discussions with George Forrest International (GFI), which agreed in November to buy the exploration company, but can not give any assurance that the acquisition will be completed.

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

The current discussions are being held “with a view to finalising documentation and formalising funding arrangements, but no assurance can yet be given that GFI will have sufficient funds in place before the extended due date of July 31,” Forsys said on Tuesday.

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

The break fee was increased from C$11,4-million when the deadline for closing the deal was extended.

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.

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