| Wed 17 Dec 2008, 16:35 | | FUM - First Uranium Corporation - First Uranium receives $50 million from |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium receives $50 million from
Gold Wheaton Barbados Corporation as the first tranche payment of a Gold Stream
transaction all amounts are in us dollars unless otherwise noted
First Uranium Corporation
(Continued under the laws of British Columbia, Canada)
(Registration number C0777384)
(South African registration number 2005/033680/07)
Share code: FUM ISIN: CA33744R1029
FIRST URANIUM RECEIVES $50 MILLION FROM
GOLD WHEATON BARBADOS CORPORATION
AS THE FIRST TRANCHE PAYMENT OF A GOLD STREAM TRANSACTION
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 it
has received the initial $50 million from Gold Wheaton (Barbados) Corporation
("GW"), a wholly-owned subsidiary of Gold Wheaton Gold Corp., in respect of the
previously announced transaction, whereby GW will purchase 25 percent of the
estimated 2.1 million ounces of life-of-mine gold production from the Company`s
Mine Waste Solutions tailings recovery operation ("MWS") in South Africa.
Under the terms of the Transaction, in addition to the $50 million, GW shall pay
First Uranium:
* subject to financing, a further $75 million (the "Second Payment") three
months from December 12, 2008, the effective closing date of the
Transaction
* an ongoing payment equal to the lesser of $400 per ounce (subject to an
annual inflation adjustment of 1.01 percent, starting in the fourth year
after the First Payment) and the prevailing spot price at the time of such
payment, for each ounce of gold delivered under the contract
* if the Second Payment is not paid, the gold stream transaction shall be
reduced to 10% and appropriate credits made.
"This transaction highlights the value of First Uranium`s substantial co-product
gold production and strengthens our balance sheet as we complete construction of
the uranium plants at our Ezulwini and MWS operations," commented President and
CEO of First Uranium, Gordon Miller. "With extensive experience in mining,
including tailings recovery operations, David Cohen and his team at Gold Wheaton
are an excellent fit to partner with us at our MWS operation, which is
performing very well against plan."
First Uranium has agreed to a deliver a minimum of 20,000 ounces of gold into
the Transaction during calendar year 2009. GW will not be required to
contribute to any capital or exploration expenditures in respect of MWS`s
tailings recovery operation. Provided that the Second Payment is paid, GW will
be granted a right of first refusal on any future gold stream agreements or
similar arrangements proposed to be entered into by First Uranium or its
subsidiaries in respect of MWS and the Company`s Ezulwini Mine.
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 production 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 conclusions of
the pre-feasibility study on MWS; the actual results of additional construction
and development activities at MWS; the timing and amount of estimated future
production and the costs thereof; capital expenditures; the availability of any
additional capital required to bring future projects into production; 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 Annual Information Form dated
June 24, 2008 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 (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
operation. 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
17 December 2008
Sponsor: Investec Bank Limited
Date: 17/12/2008 16:35:20 Produced by the JSE SENS Department.
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