Forsys Metals

Forsys Metals is a Canadian mining company whose principal activities have centered on uranium and gold assets in Namibia. The company became particularly associated with the Valencia uranium project, later referred to in connection with the Norasa uranium project, as well as the nearby Namibplaas uranium exploration property and the Ondundu gold project. Its business model has been based on acquiring mineral interests, conducting exploration and technical evaluation, securing regulatory approvals, and advancing projects toward development rather than operating a broad portfolio of producing mines. Forsys entered Namibia's uranium sector through the Valencia deposit. In July 2005, it acquired a 90% interest in the project and increased its position to full ownership in March 2007. Exploration and prospecting work supported a technical report filed in June 2007 that estimated reserves for Valencia. The project then reached an important regulatory milestone when the Namibian government granted the company a 25-year mining licence in August 2008, following completion of environmental requirements. The company also pursued exploration around Valencia. In July 2009, it began exploratory uranium drilling at the Namibplaas permit, located approximately seven kilometres from Valencia. Forsys held a 70% interest in that property at the time and was later reported to be acquiring the remaining 30% through the issue of new shares and purchase warrants. In the gold sector, Forsys agreed in August 2010 to allow Angus Mining (Namibia), another Canadian company, to explore its wholly owned Ondundu Project. Forsys attracted significant attention in 2008 when George Arthur Forrest attempted to acquire the company through a subsidiary of the Forrest Group. The proposed transaction, announced with an indicated value of approximately C$579 million, received the support of Forsys management. It ultimately failed in September 2009 after the proposed buyer was unable to secure financing acceptable to the Canadian federal government. Subsequent reporting and diplomatic material raised concerns that the transaction could have resulted in uranium being sold to Iran, although the reported acquisition did not proceed. The company was listed on the Toronto Venture Exchange in September 2004 and transferred to the Toronto Stock Exchange in October 2006. By November 2011, published information described Forsys as having an approximate market capitalization of C$55 million, nearly C$5 million in working capital, and a net loss of approximately $971,000 for the third quarter. Those figures are historical and do not establish the company's current financial position. Publicly available reference material supplied for this dossier does not provide enough information to determine Forsys Metals' present operating status, current ownership, current management, or the development stage of its Namibian projects.

Forsys Metals developed as a Canadian mineral-exploration and project-development company with a focus on assets in Namibia. Its most significant historical project was Valencia, a uranium deposit that became the foundation of the company's Namibian portfolio and was later associated with the Norasa uranium project. The company's activities illustrate the typical progression of a junior mining enterprise: acquiring interests in prospective properties, expanding ownership, commissioning exploration and technical studies, seeking environmental clearance and permits, and attempting to secure the capital required for development. The key step in Forsys's early Namibian strategy came in July 2005, when it acquired a 90% interest in the Valencia uranium deposit. In March 2007, it increased that position to 100%, giving it complete ownership of the project. Exploration and prospecting work at Valencia led to a technical report filed in June 2007 that estimated reserves. This work provided a technical basis for advancing the project beyond an exploration-stage asset. Regulatory progress followed. After environmental requirements had been cleared, the Namibian government granted Forsys a 25-year mining licence for Valencia in August 2008. The licence was an important milestone, although a mining licence alone does not establish that commercial production began or that the project reached operating status. The supplied reference material does not document subsequent production, and current project status cannot be confirmed from the available sources. Valencia also formed the center of a proposed corporate transaction. In November 2008, George Arthur Forrest sought to acquire Forsys through a subsidiary of the Forrest Group. The proposed consideration was reported at approximately C$579 million, and Forsys management supported the offer. The transaction did not close. In September 2009, it foundered because the proposed buyer had not obtained financial backing acceptable to the Canadian federal government. Later reporting connected to diplomatic cables released by WikiLeaks described U.S. and Canadian concerns that the transaction might have allowed uranium to be sold to Iran, which was seeking nuclear fuel. These concerns form part of the historical record surrounding the failed takeover, but the reference material does not establish that such a sale occurred. Alongside Valencia, Forsys expanded its exploration program. In July 2009, it began exploratory drilling for uranium at the Namibplaas permit, around seven kilometres from Valencia. Forsys held a 70% interest in Namibplaas and, by November 2011, was reported to be acquiring the remaining 30% through newly issued shares and purchase warrants. The proximity of Namibplaas to Valencia gave the property strategic relevance within the company's uranium portfolio. Forsys also maintained exposure to gold exploration. In August 2010, it finalized an agreement with Angus Mining (Namibia), another Canadian company, under which Angus would explore for gold at Forsys's wholly owned Ondundu Project. This arrangement broadened the company's commodity focus beyond uranium while retaining Namibia as its principal operating geography. The company's corporate-market history began with a listing on the Toronto Venture Exchange in September 2004. It moved to the Toronto Stock Exchange in October 2006. Historical information from November 2011 described a market capitalization of about C$55 million, nearly $5 million in working capital, and a third-quarter net loss of approximately $971,000, broadly similar to the loss reported for the comparable period. These financial figures are time-specific and should not be interpreted as current data. The available material ends without establishing Forsys Metals' present ownership, management, listing status, financial condition, production record, or the current status of Valencia, Namibplaas, and Ondundu. Accordingly, the company's current status is recorded as unknown in this dossier.

• 2011

  Namibplaas ownership consolidation planned

  [1]Forsys Metalsen.wikipedia.org

  Forsys was reported to be acquiring the remaining 30% of Namibplaas through shares and warrants.

• 2010

  Ondundu gold exploration agreement

  [1]Forsys Metalsen.wikipedia.org

  Forsys entered an arrangement for Angus Mining (Namibia) to explore its Ondundu gold project.

• 2009

  Namibplaas drilling begins

  [1]Forsys Metalsen.wikipedia.org

  Forsys began exploratory uranium drilling at the Namibplaas permit near Valencia.

• 2009

  Forrest acquisition fails

  [1]Forsys Metalsen.wikipedia.org

  The proposed takeover collapsed after acceptable financing was not secured.

• 2008

  Valencia mining licence granted

  [1]Forsys Metalsen.wikipedia.org

  Namibia granted Forsys a 25-year mining licence for Valencia after environmental requirements were cleared.

• 2008

  Proposed Forrest Group acquisition

  [1]Forsys Metalsen.wikipedia.org

  A Forrest Group subsidiary launched a proposed acquisition of Forsys valued at approximately C$579 million.

• 2007

  Full ownership of Valencia

  [1]Forsys Metalsen.wikipedia.org

  Forsys increased its Valencia interest to 100% and subsequently filed a technical report estimating project reserves.

• 2006

  Transfer to the Toronto Stock Exchange

  [1]Forsys Metalsen.wikipedia.org

  The company moved from the Toronto Venture Exchange to the Toronto Stock Exchange.

• 2005

  Acquisition of Valencia interest

  [1]Forsys Metalsen.wikipedia.org

  Forsys acquired a 90% interest in the Valencia uranium deposit in Namibia.

• 2004

  Initial public listing

  [1]Forsys Metalsen.wikipedia.org

  Forsys Metals was listed on the Toronto Venture Exchange.

A Canadian resource-development company focused on uranium and gold exploration and the advancement of Namibian mineral projects.

• Uranium mining project · 2005

  Valencia uranium project

  Valencia is Forsys Metals' principal historical uranium asset in Namibia. The company acquired a 90% interest in 2005 and reached full ownership in 2007. Exploration supported a reserve estimate in a technical report filed in June 2007. Following environmental clearance, Namibia granted the project a 25-year mining licence in August 2008. The available material does not confirm whether commercial production began or document the project's current status.

• Uranium project

  Norasa uranium project

  Norasa is the name associated with Forsys Metals' principal uranium development in Namibia in the supplied reference description. The reference identifies it as an important company project, but provides no separate development chronology, resource figures, production record, or current ownership details beyond the historical Valencia information.

• Uranium exploration property · 2009

  Namibplaas

  Namibplaas is a uranium exploration permit located approximately seven kilometres from Valencia. Forsys began exploratory drilling there in July 2009. The company held a 70% interest and was reported in 2011 to be pursuing the remaining 30% through the issuance of new shares and purchase warrants.

• Gold exploration project · 2010

  Ondundu Project

  Ondundu is a wholly owned gold exploration project in Namibia. In August 2010, Forsys finalized an agreement under which Angus Mining (Namibia) would conduct gold exploration on the property. The available reference material does not provide later exploration results or confirm the project's present status.

• 2011

  Political and nuclear-proliferation concerns around proposed takeover

  Diplomatic cables released by WikiLeaks described U.S. and Canadian concerns that a proposed Forrest Group acquisition of Forsys could have enabled uranium sales to Iran. The proposed transaction had failed in 2009 because acceptable financing was not secured. The available material does not establish that uranium was sold to Iran or that Forsys committed wrongdoing.

  Source

Read more

• 2010

  Broaden exploration into goldStrategy

  Background

  Forsys maintained a wholly owned gold exploration property in addition to its uranium assets.

  Action taken

  It finalized an agreement for Angus Mining (Namibia) to explore the Ondundu Project.

  Aftermath

  The agreement expanded the company's exploration activity beyond uranium, but later results are not provided in the available material.

  Source

• 2009

  Expand uranium exploration to NamibplaasStrategy

  Background

  Forsys sought to explore additional uranium potential close to its Valencia project.

  Action taken

  It commenced exploratory drilling at the Namibplaas permit.

  Aftermath

  The company continued to pursue a larger interest in Namibplaas and was reported in 2011 to be acquiring the remaining 30%.

  Source

• 2008

  Advance Valencia through permittingOther

  Background

  The company sought regulatory authorization to move the Valencia project toward possible mine development.

  Action taken

  After environmental requirements were cleared, Forsys obtained a 25-year mining licence from the Namibian government.

  Aftermath

  Valencia obtained a major regulatory approval, although the supplied sources do not confirm subsequent commercial production.

  Source

• 2008

  Support proposed Forrest Group takeoverM&A

  Background

  George Arthur Forrest sought to acquire Forsys through a Forrest Group subsidiary.

  Action taken

  Forsys management supported the proposed transaction, reported at approximately C$579 million.

  Aftermath

  The transaction failed in September 2009 after acceptable financing was not secured.

  Proposed transaction value. (November 2008)

  Source

• 2007

  Consolidate Valencia ownershipOther

  Background

  Exploration and project advancement made full control of Valencia strategically important.

  Action taken

  Forsys increased its interest in Valencia from 90% to 100%.

  Aftermath

  The company proceeded with technical evaluation and later obtained a Namibian mining licence.

  Source

• 2005

  Acquire a controlling interest in ValenciaM&A

  Background

  Forsys was building a Namibian mineral portfolio and sought exposure to uranium through the Valencia deposit.

  Action taken

  The company acquired a 90% interest in Valencia.

  Aftermath

  Forsys later increased its ownership to 100%, making Valencia its principal historical uranium asset.

  Source

1. 1Forsys Metalsen.wikipedia.org