| Tue 12 May 2009, 7:17 | | FUM - First Uranium Corporation - First Uranium Corporation Announces |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium Corporation Announces
$106,750,000 Bought Deal Equity Financing
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
First Uranium Corporation
FIRST URANIUM CORPORATION ANNOUNCES $106,750,000 BOUGHT DEAL EQUITY FINANCING
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" or "the Company") announced today that it
has entered into a bought deal financing agreement with a syndicate of
underwriters led by Scotia Capital Inc. and including Macquarie Capital
Markets Canada Ltd., National Bank Financial Inc. and Raymond James Ltd.
(collectively the "Underwriters"). Under the agreement, the Underwriters will
purchase 15,250,000 common shares of First Uranium at a price of $7.00 per
share for gross proceeds of $106,750,000 (the "Offering").
First Uranium has granted to the Underwriters an over-allotment option,
exercisable for a period of 30 days from the closing of the Offering, to
purchase up to an additional 2,287,500 of the Company`s common shares on the
same terms as set out above solely to cover over-allotments, if any, and for
market stabilization purposes.
The Company intends to use the net proceeds from the Offering:
- to accelerate the construction of the pressure leach portion of the
uranium circuit at the Mine Waste Solutions tailings recovery operation
to more quickly realize higher uranium and gold recoveries;
- for potential consolidation opportunities; and
- for general corporate purposes.
The Offering is expected to close on or about June 1, 2009 and is subject to
certain conditions including the receipt of all necessary approvals, including
the approval of the Toronto Stock Exchange.
The Shares will be offered in all provinces of Canada except Quebec by way of
a short form prospectus and such other jurisdictions outside of Canada
pursuant to applicable private placement exemptions.
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 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: 12/05/2009 07:17:25 Produced by the JSE SENS Department.
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