| Thu 7 Jun 2007, 8:30 | | FUM - First Uranium - News Release - Completes acq |
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FUM
FIU
FUM - First Uranium - News Release - Completes acquisition of MWS
FIRST URANIUM CORPORATION
Registration Number: C0777384
ISIN: CA33744R1029
(Continued under the laws of British Columbia, Canada)
SA Company Registration Number: 2007/009016/10
TSX Share code: FIU
JSE Share code: FUM
FIRST URANIUM CORPORATION
NEWS RELEASE - June 7, 2007
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES
FIRST URANIUM COMPLETES ACQUISITION OF MINE WASTE SOLUTIONS (PROPRIETARY)
LIMITED
Toronto, Ontario - First Uranium Corporation (TSX: FIU, JSE: FUM, CA33744R1029:
ISIN) ("First Uranium" or the "Company") today announced that its wholly-owned
subsidiary, First Uranium (Proprietary) Limited, has completed the acquisition
of Mine Waste Solutions (Proprietary) Limited ("MWS") and its wholly-owned
subsidiary Chemwes (Proprietary) Limited ("Chemwes"). With this closing, First
Uranium will issue, in full consideration of the purchase price, 3,093,980
common shares to the vendors, namely Fraser Alexander Tailings (Pty) Ltd.,
Nedbank Capital, Industrial Development Corporation of South Africa Limited and
the current MWS management.
The MWS assets acquired include:
* a gold plant with proven capacity for processing 570,000 tonnes per month
and
** three tailings dams from which uranium and gold can be recovered.
"We welcome the Mine Waste Solutions operating team into First Uranium, where
they will join our Buffelsfontein operations led by Jacob Mtonga," said Gordon
Miller, President and CEO of First Uranium. "The acquisition facilitates the
Buffelsfontein tailings recovery project reaching peak production sooner,
improving its overall economics and extending the life of the project. We are
pleased to have this acquisition completed ahead of schedule and appreciate the
prompt attention given to our transaction by the South African Reserve Bank and
the Competition Commission of South Africa to approve this transaction."
The acquisition of MWS benefits the Buffelsfontein tailings recovery project by
providing:
* immediate financial benefit from gold production, 15 months ahead of
schedule;
* an accelerated schedule (by eight months) to achieve peak uranium and gold
production;
* a tailings deposition area;
* an increase to the measured and indicated resource of the project by
172,000 ounces of gold and 4.9 million pounds of uranium;
* an increase to the inferred resource of the project by 566,000 ounces of
gold and 12.4 million pounds of uranium;
* the life of the project from 14 to 16 years and
* an improved NPV.
For more details about how the acquisition of MWS impacts the Buffelsfontein
tailings recovery project reference should be made to the following documents on
First Uranium`s website, www.firsturanium.com:
* news release of April 4, 2007 "First Uranium acquires Mine Waste Solutions
(Proprietary) Limited to complement the Buffelsfontein Tailings Recovery
Project in South Africa":
* news release of May 2, 2007 "First Uranium signs formal agreement for the
acquisition of Mine Waste Solutions (Proprietary) Limited;
* news release of May 22, 2007 "First Uranium files revised Buffelsfontein
technical report"; and
* technical report of May 22, 2007 "Preliminary Assessment of the
Buffelsfontein Project, North West Province, Republic of South Africa."
All technical disclosure in this news release relating to the Buffelsfontein
tailings recovery project is extracted from a technical report entitled
"Technical Report - Preliminary Assessment of the Buffelsfontein Project, North
West Province, Republic of South Africa" (the "Buffels Technical Report")
originally submitted on November 8, 2006, revised on December 5, 2006 and
January 31, 2007 and further revised on May 22, 2007 prepared in accordance with
National instrument 43-101 ("NI 43-101) by R. Dennis Bergen, P.Eng and Wayne
Valliant P.Geo of Scott Wilson RPA, each of whom is a "qualified person" under
NI 43-101 and is independent of First Uranium. The disclosure contained in this
news release has been reviewed and approved by Mr. Bergen and Mr. Valliant.
The economic analysis contained in this news release is contained in the Buffels
Technical Report and is based, in part, on inferred resources, and is
preliminary in nature. Inferred resources are considered too geologically
speculative to have mining and economic considerations applied to them and to be
categorized as Mineral Reserves. There is no certainty that the reserves
development, production and economic forecasts on which the preliminary
assessment contained in the Buffels Technical Report is based, will be realized.
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 potential production rates and operating costs, processing and
development plans, estimated net present values 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
Bob Tait, VP Investor Relations at 416 558-3858 or bob@firsturanium.com
Date: 07/06/2007 08:30:01 Produced by the JSE SENS Department.
