| Mon 9 Mar 2009, 14:43 | | FUM - First Uranium Corporation - Simmer & Jack Mines Limited closes its |
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FUM
FIU
FUM - First Uranium Corporation - Simmer & Jack Mines Limited closes its
secondary offering of shares of First Uranium Corporation
First Uranium Corporation
(Continued under the laws of British Columbia, Canada)
(Registration number C0777384)
(South African registration number 2007/009016/10)
Share code: FUM ISIN: CA33744R1029
SIMMER & JACK MINES LIMITED CLOSES ITS 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 its controlling
shareholder, Simmer & Jack Mines, Limited ("Simmers") (JSE: SIM), has closed the
previously announced bought deal financing whereby Simmers sold 19,600,000
common shares of First Uranium (the "Shares") at a price of $4.60 per Share for
aggregate gross proceeds of $90,160,000 (the "Secondary Offering"). First
Uranium did not receive any of the proceeds from the Secondary Offering.
The Secondary Offering was made through a syndicate of underwriters led by RBC
Capital Markets, which included Scotia Capital Inc., National Bank Financial
Inc., Macquarie Capital Markets Canada Ltd. and Raymond James Ltd.
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 common shares of First Uranium 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 gold mine from Anglogold Ashanti Limited.
The Shares were sold by way of a final short form prospectus filed on March 2,
2009 by First Uranium in each of the provinces of Canada, except Quebec, and
outside of Canada pursuant to applicable private placement exemptions.
As of the close of the Secondary Offering (but without taking into account any
over-allotment option), Simmers owns 62,122,653 common shares of First Uranium,
representing 41.0% of First Uranium`s 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 news release does
not constitute an offer to sell or the solicitation of an offer to buy nor was
there any sale of the securities related to this transaction 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.
9 March 2009
Sponsor: Investec Bank Limited
Date: 09/03/2009 14:43:01 Produced by the JSE SENS Department.
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