First Metals Inc. Receives Indenture Default and Interest Forbearance from Majority of Bond Holders

First Metals Inc. (TSX:FMA) announced that the Corporation has received a forbearance from the majority of bond holders until November 1st, 2010 allowing debt restructuring discussions to progress and continued discussions with Kaskattama Inc.

The press release is quoted as saying:

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.

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