The Company’s flagship Norasa Uranium Project is one of the only construction ready uranium projects in the world with a mining licence
Forsys Metals Corp. (TSX: FSY) (FSE: F2T) (NSX: FSY) (“Forsys” or the “Company”) is pleased to announce the appointment of Bacchus Capital Advisers (“Bacchus Capital”) to conduct a strategic review of the Company’s 100% owned Norasa Uranium Project ( “Norasa”), located in Namibia, Africa.
The decision to undertake a strategic review of Norasa has been prompted by the ongoing developments in the uranium market and the structural misalignment of flat or declining supply versus growing demand. The strategic review will consider, evaluate and compare a broad selection of potential options for the purpose of identifying opportunities to maximise the value of Norasa for the Company’s shareholders. As part of the strategic review, Bacchus Capital will undertake a detailed evaluation of the Norasa project within the context of the wider market and regional opportunities.
All parties interested in more information regarding the strategic review process should contact Bacchus Capital directly.
The Board reserves the right to amend any aspect of the process as outlined above or to terminate the process at any time and, in such cases, will make further announcements as necessary.
Mark Frewin, Forsys CEO and Director, said:
“The Norasa Uranium Project is one of the few post-DFS, construction ready, uranium projects with a mining license, which positions this asset as one of the only projects in the world able to potentially benefit from the near to mid-term expected supply shortages. Additionally, Norasa is located in Namibia, a strong mining jurisdiction with a history of support for the development and operation of uranium projects.
We are undertaking this review in order to maximise the value of this unique asset for shareholders and will consider all potential options that result from this strategic review.”
Norasa Project Overview
The Company’s flagship Norasa Uranium Project is one of the only construction ready uranium projects in the world with a mining licence. Located in the Republic of Namibia, Norasa is situated 25 km from Rio Tinto’s historically significant Rössing uranium mine. The completed DFS confirmed Norasa’s robust economics, with a 32% IRR, a pre-tax NPV(8%) of US$663m, and US$1,175m operating cash flow. Mineral reserves total 90.7 Mlbs U3O8. The Norasa plant annual throughput is expected to be 11.2Mtpa, producing an average of 5.2m/lbs U3O8 per year. The project has an open pit mine design with a low strip ratio and lower quartile mining costs.
Namibia, the fifth largest uranium producing country globally, is a mining-friendly jurisdiction with strong government support for the Norasa project. Uranium macro fundamentals are positive given: the doubling in demand for electricity; global G20 ambitions to become carbon neutral using clean renewable energies; demand for uranium is expected to exceed primary production considering the increase in nuclear reactors already under construction, proposed or planned to be built.
Source: Company Press Release