Forsys Metals intends to raise up to C$2.35m in gross proceeds by way of a non-brokered private placement.
As a result of market conditions, the Company has revised the terms of the financing so that up to 19.6m units ("the Units") in the Company at a subscription price of $0.12 per Unit are being offered.
Each Unit will consist of one Class A Common Share ("Common Share") and one half of one Common Share purchase warrant that entitles the holder to acquire a new Common Share in Forsys at a price of $0.24 for a period of two years from the date of issue.
Proceeds from the private placement will be used to fund the Norasa Uranium project in Namibia, as well as for general working capital purposes.
Forsys has received a firm commitment from Leo Fund Managers Limited ("Leo"), the Company’s largest shareholder, whereby Leo will subscribe on behalf of certain of its funds for 7.95 million Units for gross proceeds of C$0.95m.
Forsys Chief Executive Officer Marcel Hilmer said: "A further investment in the Company by Leo, a leading European financial services company based in London, demonstrates a continuing commitment by Leo to the Company specifically and the uranium industry in general."
The Offering is expected to close on or about October 9, 2015. All securities issued through the private placement will be subject to a four-month and one-day hold period from the date of the closing. Completion of the private placement is subject to customary approvals and conditions. Finders’ fees may be payable on a portion of the non-brokered placement.