| Wed 18 Feb 2009, 7:40 | | FUM - First Uranium Corporation - Secondary offering of shares |
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FUM
FIU
FUM - First Uranium Corporation - Secondary offering of shares
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
F I R S T U R A N I U M C O R P O R A T I O N
NEWS RELEASE - FEBRUARY 17, 2009
SIMMER & JACK MINES, LIMITED ANNOUNCES SECONDARY OFFERING OF SHARES OF FIRST
URANIUM CORPORATION
All amounts are in Canadian dollars unless otherwise noted.
This news release is intended for distribution in Canada only and is not
intended for distribution to United States newswire services or dissemination in
the United States.
Toronto and Johannesburg - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium") announced today that majority shareholder,
Simmer & Jack Mines, Limited ("Simmers") (JSE: SIM), has entered into a bought
deal financing agreement with a syndicate of underwriters led by RBC Capital
Markets whereby Simmers will sell 19,600,000 common shares (the "Shares") of
First Uranium at a price of $4.60 per Share for aggregate gross proceeds of
$90,160,000 (the "Secondary Offering"). First Uranium will not receive any of
the proceeds from the Secondary Offering.
Simmers has granted to the underwriters an over-allotment option, exercisable
for a period of 30 days from the closing of the Secondary Offering, to purchase
up to an additional 2,940,000 Shares on the same terms as set out above solely
to cover over-allotments, if any, and for market stabilization purposes.
Simmers plans to use the net proceeds from the Secondary Offering to fund in
part the acquisition of the Tau Lekoa Mine from Anglogold Ashanti Limited. The
Tau Lekoa Mine is located near the town of Orkney in the North West Province of
South Africa. Further details of the acquisition by Simmers are detailed in a
separate news release issued by Simmers simultaneously with this news release.
The Secondary Offering is scheduled to close on March 9, 2009, and is subject to
certain conditions including, but not limited to, the receipt of all necessary
regulatory approvals.
The Shares will be offered in all provinces of Canada except Quebec by way of a
short form prospectus and in such other jurisdictions outside of Canada pursuant
to applicable private placement exemptions.
Immediately following the closing of the Secondary Offering, Simmers will
continue to own 62,122,653 common shares of First Uranium, representing 41.0% of
the 151,574,037 common shares issued and outstanding.
The securities have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, or under any state securities laws and may
not be offered or sold in the United States, absent registration or an
applicable exemption from the registration requirements. This press release does
not constitute an offer to sell or the solicitation of an offer to buy nor will
there be any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful.
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
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.
Date: 18/02/2009 07:40:02 Produced by the JSE SENS Department.
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