| Wed 4 Jul 2012, 7:50 | | First Uranium Corp - Update on sale of MWS |
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FUU
Update on sale of MWS
First Uranium Corporation
(Continued under the laws of Ontario, Canada)
(Registration number 2082276)
(South African registration number 2007/009016/10)
Share code: FUM ISIN: CA33744R1029
July 4, 2012
First Uranium announces update on sale of MWS to AngloGold Ashanti
All amounts are in US dollars unless otherwise noted.
Toronto and Johannesburg First Uranium Corporation (TSX:FIU.UN), (JSE:FUU)
(ISIN:CA33744R5087) (First Uranium or the Corporation) announced that as
previously reported on 29 June 2012, on 3 July 2012 the Closing Date occurred, as
defined in the agreement (the AGA Agreement) dated March 2, 2012 for the sale,
indirectly, of all of the shares of Mine Waste Solutions (Proprietary) Limited (MWS),
owner of the tailings recovery project in South Africa, to AngloGold Ashanti Limited
(AGA) (the AGA Transaction). The Corporation has been advised that it could take
up to three weeks for the Discharge Documents (as defined below) to be registered,
accordingly, the AGA Transaction is expected to be implemented by 24 July 2012, or on
an earlier date depending on the date the Discharge Documents are registered.
At this juncture, all of the documents required to conclude the AGA Transaction have
been delivered to Edward Nathan Sonnenbergs as Closing Document Stakeholder, the
purchase price, in accordance with the AGA Agreement, has been delivered to
Computershare Trust Company of Canada and Computershare Investor Services
(Proprietary) Inc., each a Purchase Price Stakeholder, and certain documents (Discharge
Documents) relating to the discharge of the security held for the benefit of the 7%
secured convertible notes (the Canadian Notes) issued by the Corporation, the 11%
secured convertible notes (the Rand Notes) issued by MWS and the Gold One $10
million loan facility will be lodged with the appropriate deeds office.
Upon registration of the Discharge Documents releasing all security in the MWS assets,
the Closing Document Stakeholder will release the remaining closing documents from
escrow and the Purchase Price Stakeholders will pay: (i) to BNY Trust Company of
Canada, as trustee for the Canadian Notes, C$110 million, and to or to the order of GMG
Trust Company (SA) Pty Limited, as trustee for the Rand Notes (together the Note
Trustees), ZAR418.6 million, (ii) to Gold One, $10 million plus accrued interest to the
date of payment; (iii) $25 million to the warranty escrow agent; and (iv) the balance shall
be paid to First Uranium.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU.UN, JSE:FUU) is a Canadian resource company which
operates the Ezulwini mine, an underground gold and uranium operation and Mine
Waste Solutions (MWS), a tailings recovery facility. Both operations are situated in South
Africa.
For further information:
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
Corporation'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 Corporation'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.
www.firsturanium.com
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