| Tue 8 Dec 2009, 16:38 | | FUM - First Uranium Closes Previously Announced Gold Stream Transaction |
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FUM
FIU
FUM - First Uranium Closes Previously Announced 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
FIRST URANIUM CLOSES PREVIOUSLY ANNOUNCED GOLD STREAM TRANSACTION
$50 Million payment validates quality of First Uranium`s assets and confidence
in its production capabilities
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 closed a previously announced Transaction with Gold Wheaton (Barbados)
Corporation ("GW"). Upon closing the Transaction, GW paid to First Uranium $50
million for the right to purchase seven percent of the estimated 5.8 million
ounces of life-of-mine gold production from the Company`s Ezulwini Mine in South
Africa.
"This contract validates the value of our substantial co-product gold
production at Ezulwini," explained Gordon Miller, President and CEO of First
Uranium. "To further strengthen our balance sheet and fund future capital
projects, we continue to actively pursue various other financing options and
reprioritize certain development and expansion activities to optimize the
Company`s cash position."
Under the terms of the Transaction, for each ounce delivered to GW, GW shall
also pay First Uranium the lesser of $400 per ounce and the prevailing spot
price (subject to an annual inflation adjustment of one percent, starting in the
fourth year).
Also under the terms of the Transaction, the Ezulwini Mine will deliver to GW a
guaranteed minimum of 16,500 ounces of gold in calendar 2010 and 19,500 ounces
in calendar 2011.
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
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.
8 December 2009
Sponsor: Investec Bank Limited
Date: 08/12/2009 16:38:39 Produced by the JSE SENS Department.
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