| Wed 28 Jan 2009, 11:05 | | SIM - Simmers - First Uranium Corporation Announces Private Placement Financing |
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SIM
SIIF
SIM - Simmers - First Uranium Corporation Announces Private Placement Financing
Simmer & Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM ISIN Code: ZAE00006722
("Simmers" or "the Company")
FIRST URANIUM CORPORATION ANNOUNCES $61,500,000 BOUGHT DEAL PRIVATE PLACEMENT
FINANCING
All amounts are in Canadian dollars unless otherwise noted.
Simmer & Jack Mines, Limited announced today that its 62.3%-held subsidiary,
First Uranium Corporation ("First Uranium" or "the Corporation") has entered
into a bought deal private placement offering with a syndicate of underwriters
led by Macquarie Capital Markets Canada Ltd. and including Scotia Capital Inc.,
and National Bank Financial Inc. (collectively the "Underwriters"). Under the
agreement, the Underwriters will purchase 20,500,000 Units of First Uranium at a
price of $3.00 per Unit ("the Offering Price") for gross proceeds of $61,500,000
(the "Offering"). Each Unit will consist of one common share of First Uranium
(a "Unit Share") and one-half of one common share purchase warrant (each full
warrant, a "Warrant"), each full Warrant being exercisable to acquire one common
share of First Uranium at a purchase price of $4.15 for a period of 24 months
following the Closing Date.
The Offering is expected to close on 11 February 2009 (the "Closing Date") and
is subject to certain conditions including the receipt of all necessary
approvals, including the approval of the Toronto Stock Exchange. The Unit
Shares, the Warrants and the common shares issuable on the exercise of the
Warrants will be subject to a hold period of four months plus one day after the
Closing Date.
Should the Offering receive the necessary approvals, the effect will be to
reduce Simmers` holding in First Uranium from its current 62.36% to 53.93%. If
the Warrants are exercised, First Uranium stands to receive $42.8 million in
addition to the Offering of $61.5 million and Simmers` holding in First Uranium
will reduce further to 50.51%.
First Uranium will use the net proceeds from the Offering to fund the continued
development of the Ezulwini Mine and the Mine Waste Solutions tailings recovery
operation and for general corporate purposes.
For further information, please contact:
First Uranium
Bob Tait, VP Investor Relations at 416 342-5639 (office), 416 558-3858 (mobile)
or bob@firsturanium.ca
Simmers
Gail Strauss, Communications Officer
at +27 11 830 0390 (office), +27 (0)84 777 4060 (mobile) or gail@simmers.co.za
Johannesburg
28 January 2009
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 28/01/2009 11:05:01 Produced by the JSE SENS Department.
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