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FUM - First Uranium Corporation - First Uranium receives an unsolicited non-
binding expression of interest for the Ezulwini Mine
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
24 April 2012
FIRST URANIUM RECEIVES AN UNSOLICITED NON-BINDING EXPRESSION OF INTEREST FOR THE
EZULWINI MINE
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 Corporation") announced that on
April 17, 2012, First Uranium received an unsolicited expression of interest
from Waterpan Mining Corporation ("WMC") and Transalloys (Pty) Ltd.
("Transalloys"), to acquire the Corporation`s Ezulwini Mine, subject to a number
of conditions precedent, including the opportunity to have 90 days from May 1,
2012 to undertake a due diligence review of the business. Following that due
diligence exercise, WMC and Transalloys envisaged being in a position to make a
definitive offer by August 1, 2012. The non-binding proposal suggested the
acquirors would consider an advance of $10 million of the $80 million proposed
purchase price to the Corporation as a form of short term bridge financing,
however such advance would not be considered until after the completion of the
due diligence exercise and no other terms with respect to such bridge financing
were provided for in the letter. The non-binding proposal would extend the
time period to approve the transaction beyond the June 30, 2012, maturity date
of the Corporation`s C$150 million aggregate principal amount of 4.25% senior
unsecured convertible debentures. There could be no assurance that, if the
proposal were accepted, a definitive offer would be made nor at what price the
final offer would be made nor that a definitive agreement could be successfully
negotiated and closed.
WMC and Transalloys had previously indicated an interest in making an offer for
the Ezulwini Mine, but as with the current expression of interest, it was non-
binding, highly conditional and did not provide for any bridge financing.
Furthermore, the earlier non-binding proposal was for $70 million and was
subject to a lengthy due diligence review and the preparation of a definitive
agreement.
The Board of Directors of the Corporation will be meeting to consider the latest
expression of interest.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) operates the Ezulwini Mine, an
underground mining operation, and Mine Waste Solutions (MWS), a tailings
recovery facility. Both operations are situated in South Africa.
For further information, please contact:
John Hick
Tel: +1 416 669 9968
Mary Batoff
Tel: +1 416 306 3081
Sponsor: Investec Bank Limited
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
Date: 24/04/2012 08:30:01 Supplied by www.sharenet.co.za
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