| Fri 6 Nov 2009, 16:12 | | FUM - First Uranium Corporation - First Uranium enters into $50 million gold |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium enters into $50 million gold
stream transaction with Gold Wheaton Barbados 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
FIRST URANIUM ENTERS INTO $50 MILLION GOLD STREAM TRANSACTION
WITH GOLD WHEATON BARBADOS CORPORATION
Gold Wheaton to purchase 7% of estimated 5.8 ounces
life-of-mine gold production from the Ezulwini Mine
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") announced that it has
entered into a definitive agreement with Gold Wheaton (Barbados) Corporation
("GW"), a wholly-owned subsidiary of Gold Wheaton Gold Corp., for GW to
purchase seven percent of the estimated 5.8 million ounces of the life-of-mine
gold production from the Company`s Ezulwlini Mine in South Africa (the
"Transaction"). Subject to certain conditions and approvals, the Transaction
is expected to close in late November 2009.
Under the terms of the Transaction, GW shall pay First Uranium $50 million upon
closing of the Transaction and, upon each gold delivery, an ongoing payment
equal to the lesser of $400 per ounce and the prevailing spot price (subject to
an annual inflation adjustment of 1 percent, starting in the fourth year after
the closing payment).
Under the terms of the Transaction, the Ezulwini Mine will deliver to GW a
guaranteed minimum of 16,500 ounces in 2010, 19,500 ounces in 2011 and an
average of approximately 26,000 ounces of gold per annum thereafter.
"This second transaction with Gold Wheaton highlights the value of our
substantial co-product gold production at Ezulwini," said Gordon Miller,
President and CEO of First Uranium. "This builds on our existing relationship
with Gold Wheaton that began with the November 2008 agreement with respect to
our Mine Waste Solutions operation."
The proceeds of this Transaction will be utilized to mitigate the effects of
future challenges in economic and industry conditions or any adjustments to the
Company`s capital or operating programs, such as delays in permitting or
production.
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.
Important factors could cause actual results to differ materially from First
Uranium`s expectations. Such factors include, among others: the timing and
amount of estimated future production and the costs thereof; the failure of
plant, equipment or processes to operate as anticipated; accidents; labour
disputes; delays in obtaining governmental approvals, as well as those factors
discussed under "Risk Factors" in First Uranium`s Annual Information Form dated
June 29, 2009 as filed with securities regulatory authorities in Canada.
Although First Uranium has attempted to identify important factors that could
cause actual results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of becoming
a significant low-cost producer of uranium and gold through the expansion of the
underground development to feed the new uranium and gold plants at the Ezulwini
Mine and through the expansion of the plant capacity of the Mine Waste Solutions
tailings recovery facility, both operations situated in South Africa.
For further information, please contact:
Bob Tait, Vice President, Investor Relations at bob@firsturanium.ca
+1 416 342-5639 (office) or +1 416 558-3858 (mobile)
1240-155 University Avenue, Toronto, ON M5H 3B7
Sponsor:Investec Bank Limited
Date: 06/11/2009 16:12:02 Produced by the JSE SENS Department.
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