| Mon 16 Apr 2007, 9:00 | | FUM - First Uranium - First Uranium announces CDN$ |
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FUM
FIU
FUM - First Uranium - First Uranium announces CDN$130 million offering of
unsecured convertible debentures
FIRST URANIUM CORPORATION
Registration Number: C0777384
ISIN: CA33744R1029
Share code: FUM
("First Uranium" or "the Company")
NEWS RELEASE - April 16, 2007
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES
FIRST URANIUM ANNOUNCES CDN$130 MILLION OFFERING OF UNSECURED CONVERTIBLE
DEBENTURES
Toronto and Johannesburg - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Company") today announced that the
Company has engaged a syndicate of investment banks led by RBC Capital Markets
for a private placement offering of unsecured convertible debentures
("Debentures") in the aggregate principal amount of CDN$130 million (the
"Offering") to be marketed on a best efforts basis.
The terms of the Offering are expected to be finalized on or about April 18,
2007. The Offering is subject to certain conditions including the approval of
the Toronto Stock Exchange and the Johannesburg Stock Exchange.
The Company intends to use the net proceeds from the Offering:
- to fund a drilling program and feasibility study in respect of the possible
expansion of its Ezulwini underground uranium and gold mine project in
South Africa;
- together with the net proceeds of the December 2006 initial public offering
to fund the development of the Company`s Ezulwini underground mining
project and its Buffelsfontein tailings recovery project, also in South
Africa; and
- for general corporate purposes.
The Company is currently working on re-commissioning the Ezulwini project with
the intention to start hoisting uranium ore and gold production in October 2007
and is scheduled to complete construction of new uranium and gold plants by June
2008. As noted above, a portion of the net proceeds of the Offering will be
used to fund an exploration program and a feasibility study in respect of the
possible expansion of the Ezulwini project. In particular, the exploratory work
is intended to confirm whether sufficient inferred uranium and gold resources at
Ezulwini can be converted to the measured and indicated categories to justify:
- the construction of a new 250,000-tonne per month shaft to increase the
amount of ore that could be hoisted to the surface and provide easier
access to future extensions of the underground operation; and
- an expansion of the capacity of the planned uranium plant from 100,000 to
350,000 tonnes per month.
In conjunction with the Offering, Simmer & Jack Mines, Limited ("Simmers"), the
holder of approximately 67.2% of the issued and outstanding common shares of
First Uranium, has agreed to enter into a securities lending arrangement with
RBC Capital Markets. Simmers has no current intention to sell any of its
shareholding interest in First Uranium and has agreed to enter into the
securities lending arrangement solely for purposes of increasing the liquidity
of First Uranium`s common shares.
This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities have not
been and will not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any state securities laws and may not
be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
Cautionary Language regarding Forward-Looking Information
This news release contains and refers to forward-looking information based on
current expectations. All other statements other than statements of historical
fact included in this release including, without limitation, statements
regarding processing and development plans and future plans and objectives of
First Uranium are forward-looking statements (or forward-looking information)
that involve various risks and uncertainties. These forward-looking statements
are made as of the date hereof and there can be no assurance that such
statements will prove to be accurate, such statements are subject to significant
risks and uncertainties, and actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements that are included
herein, except in accordance with applicable securities laws.
Important factors could cause actual results to differ materially from First
Uranium`s expectations. Such factors include, among others: the actual results
of the planned feasibility studies on First Uranium`s projects; the actual
results of additional exploration and development activities at First Uranium`s
projects; the timing and amount of estimated future production and the costs
thereof; capital expenditures; the costs and timing of the development of First
Uranium`s projects; the availability of any additional capital required to bring
future projects into production; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices of
commodities; the failure of plant, equipment or processes to operate as
anticipated; accidents; labour disputes; delays in obtaining governmental
approvals, permits or financing or in the completion of development or
construction activities; currency fluctuations, as well as those factors
discussed under "Risk Factors" in First Uranium`s final prospectus dated
December 12, 2006 as filed with securities regulatory authorities in Canada.
Although First Uranium has attempted to identify important factors that could
cause actual results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended.
About First Uranium Corporation
First Uranium Corporation is focused on the development of South African uranium
and gold mines with the goal of becoming a significant producer through the re-
opening and development of the Ezulwini underground mine, and the construction
of the Buffelsfontein tailings recovery facility. First Uranium also plans to
grow production by pursuing acquisition and joint venture opportunities.
First Uranium Corporation
1240-155 University Avenue, Toronto, ON Canada M5H 3B7
www.firsturanium.com
For further information, please contact:
Gordon Miller, President and Chief Executive Officer at +27 11 830 0390 or Bob
Tait, VP Investor Relations at 416 558-3858 or bob@firsturanium.com
Date: 16/04/2007 09:00:00 Produced by the JSE SENS Department.
