TORONTO (miningweekly.com) – Uranium junior Forsys Metals would consider reopening discussions with George Forrest International (GFI), if it offered proof that it had the funds needed to complete the now-terminated agreement between the two firms, Forsys CEO Duane Parnham said on Friday.

But he added that Forsys will “vigorously” oppose a claim filed by GFI this week in Ontario, seeking damages of C$150-million.

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

On August 25, Forsys announced it had terminated an agreement with GFI, citing the other firm's ongoing failure to transfer the funds for its C$579-million friendly acquisition of the uranium exploration company.

Forsys said at the time it had demanded GFI pay a C$20-million reverse break fee, under the agreement between the two firms.

GFI, in turn, responded with the claim seeking damages and a declaration that it does not have to pay the reverse break fee.

“We vigorously oppose GFI's claim and will pursue all avenues to recover the reverse break fee,” Parnham said.

The company will pursue payment from GFI, and/or Forrest himself, who provided a personal guarantee for the fee, Forsys said.

GFI and Forsys initially announced the friendly takeover in November last year, and the C$7 a share deal was to have closed by March, but GFI asked for more time to come up with the funds.

This was despite having assured Forsys when the deal was initially signed that it would be financed with cash on hand and existing credit facilities.

“Since then, the company has accommodated GFI's request for an extension to secure financing by granting them several further extensions,” Parnham said.

“GFI have failed consistently to fulfill their commitments and contractual obligations to each of these extensions."

Meanwhile, the company is reviewing “all strategic options”

Further, “in the event that GFI is able to produce evidence acceptable to the Forsys board of directors that it has all funds necessary to complete the terms of the agreement, the company would consider reopening discussions with GFI about completing the arrangement as agreed, subject to GFI obtaining required Industry Canada clearance," Parnham said.

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.