| Fri 9 Apr 2010, 15:29 | | FUM - First Uranium Convertible Note Financing Closed In Escrow (all amounts are |
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FUM
FIU
FUM - First Uranium Convertible Note Financing Closed In Escrow (all amounts are
in Canadian dollars unless otherwise indicated)
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
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES
NEWS RELEASE - April 9, 2010
FIRST URANIUM CONVERTIBLE NOTE FINANCING CLOSED IN ESCROW
(all amounts are in Canadian dollars unless otherwise indicated)
Toronto and Johannesburg - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or the "Company") today announced that it
has closed, in escrow, the previously-announced private placement offering (the
"Offering") of secured convertible notes due March 31, 2013 (the "Notes"). As
of April 8, 2010, a total of $110 million has been deposited into escrow by
investors, including $20 million from Gold Wheaton Gold Corp.
The $110 million of proceeds will be held in escrow until the earlier of: i) the
close of business on April 30, 2010 (EDT) or ii) the date the escrow release
conditions are satisfied including receipt of required South African regulatory
approvals, the registration of the security documents and the meeting of other
standard closing requirements. The release of the proceeds held in escrow is
also conditional upon Simmer and Jack Mines, Limited ("Simmer & Jack")
subscribing to the Offering for approximately $62 million, including $40 million
of Notes denominated in South African Rand (the "Rand Notes") and the exchange
of its $22.1 million loan plus accrued and unpaid interest to First Uranium for
an equivalent value of Rand Notes. If the escrow conditions are completed as
contemplated, the Notes will accrue interest from the date of the
escrow closing. However, if the escrow conditions are not met by April 30, 2010,
investors will have the right to put the Notes and receive par, without accrued
interest. The Company anticipates that it will be able to meet the escrow
release conditions prior to April 30, 2010. RBC Capital Markets is acting as
sole placement agent on the Offering.
These securities have not been and will not be registered under the United
States Securities Act of 1933, as amended, or the securities laws of any state,
and may not be offered or sold in the United States unless an exemption from
registration is available. This press release does not constitute an offer to
sell or the solicitation of an offer to buy these securities in the United
States.
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 are forward-looking statements (or forward-looking
information). No assurance can be given that the transactions contemplated
herein will be concluded. The Company`s plans involve various estimates and
assumptions and its business and operations are subject to various risks and
uncertainties. For more details on these estimates, assumptions, risks and
uncertainties, see the Company`s most recent Annual Information Form and most
recent Management Discussion and Analysis on file with the Canadian provincial
securities regulatory authorities on SEDAR at www.sedar.com. 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 April 2010
Sponsor: Investec Bank Limited
Date: 09/04/2010 15:29:02 Produced by the JSE SENS Department.
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