TORONTO, Feb. 4 /CNW/ - First Metals Inc (FMA.H-NEX) (the "Corporation") announced today that holders of its outstanding 5% secured notes have
approved a resolution directing the company to proceed with the sales
of the Corporation's Fabie Bay and Magusi River properties in Quebec as
well as certain heavy equipment. Pursuant to the resolution the net
proceeds from such sales will be paid to the note holders on a pro rata
basis and following such payment the noteholders will release the
Corporation from any remaining liabilities under the notes.
The Corporation has been in negotiations for the sales of these assets
on behalf of the noteholders and expects to enter definitive agreements
in respect thereof in the near future.
Michael Churchill, the Corporation's President and Chief Executive
Officer commented, "I believe the results of the noteholder vote
underscores the effort we've put into the restructuring process to
maximize recoveries for the note holders and shareholders and generally
balance everyone's interests in light of fact the Corporation has been
in default of its notes for several months. The alternative was a
bankruptcy and liquidation which we believe would have resulted in less
recoveries for the noteholders and no chance of any recovery for
holders of common shares."
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.
SOURCE First Metals Inc.
For further information:
Michael Churchill, President and CEO, at (416) 594-3223