| Mon 1 Sep 2008, 7:34 | | FUM - First Uranium Corporation - News Release |
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FUM
FIU
FUM - First Uranium Corporation - News Release
(Continued under the laws of British Columbia, Canada)
(Registration number C0777384)
(South African registration number 2007/009016/10)
Share code: FUM ISIN: CA33744R1029
First Uranium Corporation
NEWS RELEASE - September 1, 2008
FIRST URANIUM ENTERS INTO EXCLUSIVE AGENCY AGREEMENT WITH TRAXYS TO MARKET AND
CONTRACT FUTURE URANIUM PRODUCTION
All amounts are in US dollars unless otherwise noted.
Toronto and Johannesburg - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Company") today announced that an
exclusive agency agreement has been entered into with the Traxys Group, a global
metals, minerals and energy marketing company. As per the agreement, Traxys
will market, on an exclusive basis, all of the uranium production from First
Uranium`s underground Ezulwini Mine and its tailings re-treatment operation at
Mine Waste Solutions ("MWS"), except for any uranium that might in future be
sold to fulfill South Africa`s requirements.
"While our production ramps up, we have agreed to work with Traxys to enter into
market-related transactions for short-term delivery at or near uranium spot
prices," said Gordon Miller, President and CEO of First Uranium. "Following on
from our initial spot sales contract, Traxys will help us enter into long-term
contracts with utilities and build a balanced portfolio of sales contracts while
maintaining up-side exposure to the market."
At the same time, First Uranium is maintaining regular contact with South
Africa`s Department of Minerals and Energy (DME), the national power utility
(Eskom) and the Nuclear Energy Corporation of South Africa (NESCA) to ascertain
domestic uranium requirements to meet South Africa`s national security of supply
imperatives for its planned nuclear power plants.
First Uranium expects to begin producing yellowcake (ammonium diurinate or ADU)
at the Ezulwini Mine in October 2008 and at MWS in early 2009. The Company
expects to produce approximately 454,000 pounds of uranium in the current fiscal
year, ramping up sharply to approximately 1.7 million pounds in the Company`s
fiscal year ending March 31, 2010. Over the currently planned 18-year life of
its operations, the Company expects to produce an average of approximately 2.1
million pounds of uranium per annum.
"Our near-term objectives are focused upon expanding current gold production,
while commissioning the uranium plants at both operations and delivering
consistent operational cash flows," added Mr. Miller. "We remain on track to
achieve our long-term objective to become a major low-cost uranium producer."
Cautionary Language Regarding Forward-Looking Information
This news release contains certain forward-looking statements. Forward-looking
statements include but are not limited to those with respect to the availability
of electrical power, the planned addition of owner-operated power generation,
price of electrical power and sulphuric acid, the estimation of mineral
resources and reserves, expected dates of commissioning or commencement of
production, the timing and amount of estimated future production, costs of
production, capital expenditures, costs and timing of development of new
deposits, success of exploration activities, permitting time lines, currency
fluctuations, requirements for additional capital, availability of financing on
acceptable terms, government regulation of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage and the timing and possible outcome of pending
litigation. In certain cases, forward-looking statements can be identified by
the use of words such as "goal", "objective", "plans", "expects" or "does not
expect", "is expected", "estimates", "intends" or variations of such words and
phrases, or state that certain actions, events or results "may", "could",
"would", "should", "might" or "will" be taken, occur or be achieved. Forward-
looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of First
Uranium to be materially different from any future results, performance or
achievement expressed or implied by the forward-looking statements. Such risks
and uncertainties include, among others, the actual results of current
exploration activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, availability of equipment, materials
and fuel, possible variations in grade and ore densities or recovery rates,
failure of plant, equipment or processes to operate as anticipated, accidents,
labour disputes or other risks of the mining industry, delays in obtaining
government approvals or financing or in completion of development or
construction activities, risks relating to the integration of acquisitions, to
international operations, to prices of uranium and gold, to price of electrical
power and sulphuric acid. Although First Uranium has attempted to identify
important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. It is important to note, that: (i) unless otherwise
indicated, forward-looking statements indicate the Company`s expectations as of
the date of this news release; (ii) actual results may differ materially from
the Company`s expectations if known and unknown risks or uncertainties affect
its business, or if estimates or assumptions prove inaccurate; (iii) the Company
cannot guarantee that any forward-looking statement will materialize and,
accordingly, readers are cautioned not to place undue reliance on these forward-
looking statements; and (iv) the Company disclaims any intention and assumes no
obligation to update or revise any forward-looking statement even if new
information becomes available, as a result of future events or for any other
reason.
In making the forward-looking statements in this news release, First Uranium has
made several material assumptions, including but not limited to, the assumption
that: (i) consistent supply of sufficient power will be available to develop and
operate the projects as planned; (ii) approvals to transfer or grant, as the
case may be, mining rights will be obtained; (iii) metal prices, exchange rates
and discount rates applied in the pre-feasibility study and preliminary economic
assessment are achieved; (iv) mineral resource estimates are accurate; (v) the
technology used to develop and operate its two projects has, for the most part,
been proven and will work effectively; (vi) that labour and materials will be
sufficiently plentiful as to not impede the projects or add significantly to the
estimated cash costs of operations; (vii) that Black Economic Empowerment
("BEE") investors will maintain their interest in the Company and their
investment in the Company`s common shares to a sufficient level to continue to
support the Company`s compliance with 2014 BEE requirements; and (viii) that the
innovative work on stabilizing the main shaft at the Ezulwini Mine will be
successful in maintaining a safe and uninterrupted working environment until
2024.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on the development of
its South African uranium and gold mines with the goal of becoming a significant
low-cost producer through the re-opening and underground development of the
Ezulwini Mine and the expansion of the Mine Waste Solutions tailings recovery
facility. First Uranium also plans to grow production by pursuing value-
enhancing acquisition and joint venture opportunities in South Africa and
elsewhere.
First Uranium Corporation
1240-155 University Avenue, Toronto, ON Canada M5H 3B7
www.firsturanium.com
For further information, please contact:
Bob Tait, VP Investor Relations
at 416 342-5639 (office), 416 558-3858 (mobile) or bob@firsturanium.ca
Date: 01/09/2008 07:34:01 Produced by the JSE SENS Department.
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