What is confusing for some investors is that Forsys' assets are all in Africa, so there can be no concerns of a Canadian asset falling into foreign hands.
But when a uranium deposit is involved, government sensitivities increase, and indeed the amendments to the Investment Canada Act were made, in large part, so keep track of what strategic assets other sovereign states may be acquiring.
There are rumblings that the source of GFI's financing for the $579 million deal has red flags up at Industry Canada. There are rumours of possible Iranian dollars funding the deal and while that cannot be confirmed at this point it is worth noting that the government of Iran already has a stake in Rio Tinto's (RIO-L, RTP-N) Rossing uranium mine which is just 30 km on strike from Forsys' flagship Valencia deposit.
Untangling the source of GFI's funds may take some time. Industry Canada officially has 45 days to make its determination on the deal, and given GFI's private status and its notoriously secretive ways, the government body may well need that full allotment of time to get a clear picture of what's going on.
For its part, Forsys has gone on the record as saying that the Industry Canada review is nothing more than a formality, and that nothing should be read into the fact that the decision came so late in the day. Forsys says the government's move to halt the deal in the final hour was the result of GFI only recently securing the financing, not because the source of such funds is in anyway nefarious.
GFI has told Forsys that it is waiting to get more information from Industry Canada on the reasons for the halt.
Industry Canada is not answering any questions related to the situation.