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Message: FIRST METALS INC. ANNOUNCES DEVELOPMENTS IN RESTRUCTURING PROCESS
TORONTO, March 24 /CNW/ - First Metals Inc (FMA.H-NEX) (the "Corporation") announced today that pursuant to its ongoing restructuring process
that it has executed an agreement for the disposition of its Fabie Bay
and Magusi River properties, together with certain assets related
thereto, for aggregate consideration of $500,000 payable in common
shares of Globex Mining Enterprises (TSX:GMX) at a deemed issue price
of $3.00 per share. In connection with the foregoing transaction the
Corporation also announced that Quebec Superior Court, Commercial
Chamber today issued an order appointing Demers Beaulne Inc. to act as
receiver to certain assets of the Corporation in order to complete the
disposition of the foregoing assets. It is anticipated that the
transfer of such assets will be completed on or about March 28, 2011.
The net proceeds of this sale will be used to repay amounts owing to
the Corporation's secured noteholders.
The Corporation also announced today that the previously disclosed
disposition of certain of its heavy equipment for total cash proceeds
of $1,100,000 has been completed and the net proceeds from such sale
are being held in trust in favour of the Corporation's secured
First Metals Inc. is a resource company with two main Zinc-Copper
deposits, Fabie Bay and Magusi River. Fabie Bay was producing until
December 2008 when production was suspended. The company filed a
proposal under Part III of the Bankruptcy and Insolvency Act in April
2009. The company received approval for is proposal under Part III of
the Bankruptcy and Insolvency Act in June 2009.
Some of the statements contained in this release are forward-looking
statements, such as estimates and statements that describe the
Corporation's future intentions, plans, objectives or goals, including
words to the effect that the Corporation or management expects a stated
condition or result to occur. Since forward-looking statements address
future events and conditions, by their very nature, they involve
inherent risks and uncertainties. Actual results in each case could
differ materially from those currently anticipated in such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
For further information:
Michael Churchill, President and CEO, at (416) 594-3223
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