TORONTO (miningweekly.com) – Uranium junior Forsys Metals confirmed on Friday that erstwhile suitor George Forrest International (GFI) had disputed Forsys' right to claim a C$20-million reverse break fee after terminating its agreement with GFI.

GFI alleged that Forsys had breached the agreement.

“The company strongly disagrees with GFI's assertions and will be vigorously pursuing the payment of the reverse break fee and any other legal remedies that it may have,” Forsys said on Friday.

The firm initially announced on Tuesday that it had terminated the deal with GFI, citing the other company's failure to come up with the money for its acquisition of Forsys.

The firms had agreed to a C$7,00 a share takeover by GFI in November last year, but the transaction did not close as planned in March because GFI requested more time to arrange the funds.

Since then, Forsys has agreed to several more extensions, most recently to August 24, but said on Tuesday afternoon that it had decided to terminate the deal.

“As of today's date, GFI has failed to transfer the funds necessary to complete the arrangement and the company's board of directors has determined that it was no longer in the best interests of the company to grant GFI any further extensions,” Forsys said in a statement.

The reverse break-fee was initially set at C$11,4-million, but was raised to C$20-million in March, when Forsys agreed to extend the deadline for completion of the deal.

Forsys' flagship asset is the fully-permitted Valencia uranium project in Namibia.

Shares in the company dropped 8% on Friday, to C$4,14 apiece by 15:24 in Toronto.

GFI is based in Belgium and controlled by veteran mining entrepreneur George Forrest.

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