| Tue 26 Apr 2011, 15:17 | | FUM - First Uranium Corporation - First Uranium seeks Noteholder consent to |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium seeks Noteholder consent to
amend MWS/Gold Wheaton completion test
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 SEEKS NOTEHOLDER CONSENT TO AMEND MWS/GOLD WHEATON COMPLETION
TEST
April 26, 2011, Toronto and Johannesburg: First Uranium Corporation (TSX:FIU)
(JSE:FUM) (ISIN:CA33744R1029) ("First Uranium" or the "Company") announced
that it is soliciting the consent of noteholders of the 7.00% Secured
Convertible Notes due March 31, 2013 (the "Convertible Notes") and the 11.00%
Secured Convertible Notes due March 31, 2013 (the "Rand Notes") to amend the
technical completion test under the Gold Wheaton Chemwes Purchase Agreement
whereby First Uranium would have the option, but not the obligation, to
satisfy the key criteria component of the technical completion test during the
steady state period. This will provide First Uranium with the opportunity to
satisfy the technical completion test in a shorter time frame, thus providing
greater flexibility to optimize the mine plan and complete the ramp-up of the
expanded gold plant efficiently, to the benefit of First Uranium and Franco
Nevada Corporation, which recently acquired Gold Wheaton.
First Uranium indirectly owns 100% of the equity of Chemwes (Proprietary)
Limited ("Chemwes") which owns the Mine Waste Solutions tailings reprocessing
project (the "MWS Project"). First Uranium and Chemwes entered into a
purchase agreement with Gold Wheaton Corp and Gold Wheaton (Barbados)
Corporation (collectively, "GW") on November 28, 2008 (as amended, the "Gold
Wheaton Chemwes Purchase Agreement").
The technical completion test is comprised of two components: the MWS Project
must first reach steady state production in respect of tonnes of material
processed over three consecutive months, followed by satisfying certain key
criteria, in respect of tonnes of material processed, average feedgrade to the
plant and gold recovery, for 14 consecutive days within a 90 day period. The
technical completion test is required to be satisfied by September 1, 2011, in
order to avoid incurring further obligations including penalties for the
benefit of GW. While First Uranium believes that the MWS Project is capable
of satisfying the technical completion test as currently structured prior to
September 1, 2011, subsequent to the completion of the Franco Nevada
Corporation ("FN") acquisition of GW, First Uranium approached FN to discuss a
modification to the technical completion test such that First Uranium would
have the option, but not the obligation, to satisfy the key criteria component
during the steady state period. First Uranium does not believe that this
modification will prejudice the rights of holders of either the Convertible
Notes or the Rand Notes.
Each of the indentures pursuant to which the Convertible Notes and Rand Notes
have been issued provide that particular provisions of the Gold Wheaton
Chemwes Gold Purchase Agreement, including the technical completion test, may
not be amended, revised, restated or otherwise varied without the prior
consent of the holders of not less than a majority of the voting rights of
outstanding Convertible Notes and outstanding Rand Notes. The solicitation of
the consent of holders of the Convertible Notes and the Rand Notes will be
open until at least 5:00 pm (Toronto time) on May 2, 2011, unless extended or
cancelled by First Uranium.
For further information, please contact:
Deon van der Mescht, CEO & President
c/o Janette Brandt at janette.brandt@firsturanium.com
or
Mary Batoff, Vice President, Legal & Secretary
mary@firsturanium.ca
+1 (416) 342-5635
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of
becoming a low-cost producer of gold and uranium 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 located in South Africa.
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 the timing and amount of estimated future production, processing and
development plans and future plans and objectives of First Uranium are forward-
looking statements (or forward-looking information). Forward-looking
statements are made as of the date hereof and involve various estimates and
assumptions, and known and unknown risks and uncertainties and other factors
that may cause the actual results, performance or achievements of First
Uranium to be materially different from any future results, performance or
achievement expressed or implied by the forward-looking statements.
Accordingly, readers should not place undue reliance on forward-looking
statements that are included herein, except in accordance with applicable
securities laws. Such risks and uncertainties include, among others,
conclusions of economic evaluations, changes in project parameters as plans
are refined, possible variations in grade and ore densities or recovery rates,
the failure of plant, equipment or processes to operate as anticipated, the
outcome of litigious matters and regulatory processes, including the appeal of
the integrated water use license for the TSF. For more details on these
estimates, assumptions, risks and uncertainties, see the Company`s most recent
Annual Information Form on file with the Canadian provincial securities
regulatory authorities on SEDAR at www.sedar.com.
www.firsturanium.com
Sponsor: Investec Bank Limited
Date: 26/04/2011 15:17:48 Produced by the JSE SENS Department.
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