Failed !

1 09 2009

In November of 2008 Forsys and GFI struck a friendly $579-million acquisition deal. This week Forsys released a statement indicating that “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,”. GFI was meant to have its financing ready by March 2009 but requested an extension. It still couldn’t secure financing. Or perhaps it did. The Investment Review Branch at Industry Canada “prohibited the investment pending further notice”. In business circles it is thought that the source of GFIs funding for the acquisition raised a red flag at Industry Canada. GFI is known for being secretive and perhaps the lack of transparency was an issue.
Forsys controls the Valencia unranium deposit in Namibia. The deposit is known to be low-grade but has the advantage of being fully-permitted. It’s prêt-à-miner.




One response

8 03 2011
Forsys and GFI Settle amid Wikileaks Intrigue « Just Digging: a Mining and Metals blog

[…] and GFI Settle amid Wikileaks Intrigue 8 03 2011 In one of my very first entries, I discussed the failed acquisition of Forsys, a Canadian junior with a fully-permitted uranium […]

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