While the jury stays out on nuclear power and its use, deal making is going ahead between global mining majors and uranium deposits in Namibia have become an attractive target for these firms.
Forsys Metals Corporation has struck an acquisition deal with George Forrest International Afrique (GFI).
GFI will acquire all the outstanding common shares at C$7 per share in cash for each common share of Forsys, plus the ‘in the money’ amount of any outstanding Forsys options and warrants, the two companies announced yesterday.
The C$7,00 per share consideration represents a 55% premium to the average closing price of Forsys common shares on the Toronto Stock Exchange for the 20 trading days ending November 13, 2008 and a premium of 51% to the closing price on the Toronto Stock Exchange on November 13, 2008.
Forsys Metals Corp is an emerging uranium producer in Namibia with 100% ownership in the Valencia Uranium Deposit, for which Mining Licence (ML 149) was recently granted. The Company has an extensive portfolio of uranium exploration projects totaling over 252 000 ha located in Namibia. Forsys said that Namibia is a ‘politically stable, mining friendly jurisdiction. Since achieving independence from South Africa in 1990, Namibia has shown political stability and proactive policies to attract foreign investment.’
Mining operations for uranium, diamonds, copper, gold, silver, lead and zinc deposits account for approximately 10 per cent of the country’s gross domestic product.
Namibia is the world’s sixth largest producer of uranium from only two operating mines, but has an expanding production profile supported by the government’s recent issuance of two additional mining licences.
‘Existing mines together with increased exploration activity by foreign mining companies is contributing positively to Namibia’s economic growth and sustainability,’ the companies said.
Meanwhile, GFI is a member of the Forrest Group, a private industrial conglomerate founded in 1922 in what is now the Democratic Republic of Congo (DRC). ‘The Forrest Group is one of DRC’s largest enterprises with businesses spanning civil engineering, mining, manufacturing and construction with operations in Africa, Europe and the Middle East,’ the statement read.
With the recent expansion of Forrest International into the Namibian market, George Forrest, President of the Forrest Group, stated: ‘Namibia, in my view, is a country with a very positive future for economic growth with an established mining industry including world class uranium mines. As such, I believe Forsys and the Valencia Uranium Deposit represents an excellent investment opportunity. I am also very impressed with the Namibian infrastructure and the regulatory environmental standards.’
