FIRST METALS INC. ANNOUNCES DEVELOPMENTS IN RESTRUCTURING PROCESS
March 24 2011 - 7:30AM
PR Newswire (Canada)
TORONTO, March 24 /CNW/ -- 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 noteholders. About FMA 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. To
view this news release in HTML formatting, please use the following
URL:
http://www.newswire.ca/en/releases/archive/March2011/24/c6038.html
p Michael Churchill, President and CEO, at (416) 594-3223 /p
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