| Fri 13 Mar 2009, 8:25 | | FUM - First Uranium Corporation - Receives balance payment of $75 Million From |
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FUM
FIU
FUM - First Uranium Corporation - Receives balance payment of $75 Million From
Gold Wheaton Barbados Corporation for the Gold Stream Transaction
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
NEWS RELEASE - March 12, 2009
FIRST URANIUM RECEIVES BALANCE PAYMENT OF $75 MILLION
FROM GOLD WHEATON BARBADOS CORPORATION
FOR THE 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 balance payment of $75 million from Gold Wheaton (Barbados)
Corporation ("GW"), a wholly-owned subsidiary of Gold Wheaton Gold Corp., in
respect of the previously announced purchase by GW of 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 agreement, First Uranium has agreed to deliver a minimum
of 20,000 ounces of gold during calendar year 2009, and thereafter 25 percent of
the life-of-mine gold production from MWS. In December 2008, First Uranium
received the first payment of $50 million from GW and commenced delivery of 25
percent of the gold production from MWS to GW. GW has made, and will continue
to make, ongoing payments to MWS at a price equal to the lesser of $400 per
ounce (subject to an annual inflation adjustment of 1.01 percent, starting in
December 2012) and the prevailing spot price at the time of such payment, for
each ounce of gold delivered under the agreement.
"This transaction highlights the value of First Uranium`s substantial co-product
gold production," commented President and CEO of First Uranium, Gordon Miller.
"This balance payment strengthens our balance sheet as we complete construction
of the uranium plants at our Ezulwini and MWS operations and look toward
projects that will provide future growth."
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.
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
Date: 13/03/2009 08:25:02 Produced by the JSE SENS Department.
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