| Mon 11 Jun 2012, 7:36 | | FUM - First Uranium Corporation - First Uranium receives another conditional |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium receives another conditional
proposal
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 RECEIVES ANOTHER CONDITIONAL PROPOSAL
TORONTO AND JOHANNESBURG - June 8, 2012 - The Board of Directors of First
Uranium Corporation (TSX: FIU) (JSE: FUM) (ISIN: CA33744R1029) ("FIU" or the
"Company") today received a conditional proposal letter from Kumvest (Pty)
Ltd. ("Kumvest").
The letter states that Kumvest supports the previously announced transaction
with AngloGold Ashanti Limited, which would result in the disposal of Mine
Waste Solutions and its subsidiaries, as proposed by the board of directors
of FIU. However, Kumvest goes on to state that stakeholders should be
advised that Kumvest recommends that the sale of Ezulwini to Gold One
International Limited be voted down at the shareholders meeting to be held
on June 13, 2012. Kumvest further states that, subject to a number of
conditions precedent, it would offer to subscribe for common shares of FIU
equal to 26% of FIU`s current issued and outstanding shares, at a price of
Cdn$0.37 per share. The Kumvest proposal requires that certain conditions
be met, which include (a) a vote against the sale of Ezulwini; (b) the
appointment of a new management team and four appropriate, qualified,
experienced non-executive directors including a new Chairman of the board of
directors; (c) that the new management team be given 90 days to present a
turn-around plan (which may include a planned disposal of certain assets for
fair market value) and (d) prior to its offer becoming unconditional,
Kumvest will be given access to records of the Company to perform due
diligence.
In its letter Kumvest states it has the support of approximately 20% of the
shareholders and attaches a letter signed by Nicholas Betsky and Eric Sprott
representing Sprott Asset Management, Olma Investment Group, Stratton
Enterprises Incorporated and Pratto Corporate Services ("Shareholders
Group").
However subsequent to receipt of the letter from Kumvest, Mr. Betsky
forwarded an email to FIU in which he states that the Shareholder Group does
NOT support Kumvest`s proposal with respect to the sale of Mine Waste
Solutions; and, accordingly, it is unclear whether Kumvest continues to have
the voting support and backing of the Shareholder Group.
Based upon limited due diligence of Kumvest the board of directors of FIU
has determined that Kumvest styles itself as a holding company but can find
no specific information about its interests. The individuals proposed for
management are all currently directors of companies in the Minero Group.
One of the named individuals is Mr. Chopper van der Bijl, who is a director
of Waterpan Mining Company, another company which has said it will make an
offer to shareholders of FIU, but to date, has not done so. The Minero
Group has published no financial statements and its website indicates that
financial disclosure will only be made upon a successful IPO in 2012.
Kumvest has not provided any information to determine whether it can finance
the proposal in its letter. The board of directors of FIU will meet to
consider the proposal and its bona fides.
Shareholders should use caution when considering this expression of interest
which is highly conditional and does not include evidence of financing.
For further information, please contact
John Hick or Mary Batoff
(416) 306-3072
mary@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 are forward-looking statements (or
forward-looking information). 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, including without limitation, the statements regarding the
proposed transactions with Gold One International Limited and AngloGold
Ashanti Inc. No assurance can be given that the Company will be successful
in concluding the proposed transactions and achieve the desired results.
Accordingly, readers should not place undue reliance on forward-looking
statements that are included herein, except in accordance with applicable
securities laws.
Sponsor:
Investec Bank Limited
11 June 2012
Date: 11/06/2012 07:36:01 Produced by the JSE SENS Department.
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