Wrap Text
FUM - First Uranium Corporation - Leading Proxy Advisory Firm ISS recommends
that First Uranium Shareholders Approve Asset Sales
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
May 29, 2012
LEADING PROXY ADVISORY FIRM ISS RECOMMENDS THAT FIRST URANIUM SHAREHOLDERS
APPROVE ASSET SALES
All amounts are in US dollars unless otherwise noted.
Toronto and Johannesburg - Institutional Shareholder Services (ISS), a leading
proxy advisory firm, recommended today that shareholders of First Uranium
Corporation (TSX:FIU), (JSE:FUM) (ISIN:CA33744R1029) support two asset sales
approved by First Uranium`s board of directors.
The ISS report concludes that "the proposed transactions...offer relatively
certain value which is substantially higher than the current market value of the
company`s shares".
After an exhaustive process, First Uranium`s board of directors recently
approved the sale, through two subsidiary holding companies, of its Mine Waste
Solutions operation, and the Ezulwini mine, to AngloGold Ashanti Ltd. and Gold
One International Ltd. for $335 million and $70 million respectively. Both
operations are located in South Africa.
First Uranium shareholders are due to consider the proposed transactions at a
special meeting on June 13, 2012.
John Hick, First Uranium`s lead independent director, said, "We are delighted
that ISS` very thorough review of the facts supports the board`s recommendation
to our shareholders."
The ISS report notes: "Given the lengthy, public process by which the board
arrived at both these agreements, moreover, the probability of another credible
offer - for either business - emerging now at a meaningfully higher valuation
appears thin."
The report also casts doubt on the feasibility of alternative courses of action
proposed by some shareholders. "Voting down the transactions...substantially
increases execution and financial risk without visibly increasing the potential
return to shareholders", ISS concludes.
Furthermore, its analysis was to "assess not whether the current offers can make
up what was lost, but whether they offer more value than the next best
alternative" and warns that "a trip through the bankruptcy process...raises a
fresh set of horrors not only because the bankruptcy process is designed to
protect debt holders rather than shareholders, but because the key physical
assets are not located where Canadian courts have jurisdiction, and might be
treated substantially differently by South African courts, ministers and
regulators with different constituencies and priorities".
The Board unanimously recommends that shareholders and debtholders vote FOR the
transactions.
Shareholders and debtholders are reminded to vote their proxy FOR the
transactions and all related proposals before the proxy voting deadline on
Monday, June 11, 2012 at 5:00 p.m. (Toronto time).
If you have any questions about the information contained in the Management
Information Circulars or require assistance with voting your securities, please
contact Kingsdale Shareholder Services Inc. by telephone at 1-866-581-1571 toll-
free in North America, or at 1-416-867-2272 outside of North America (collect
calls accepted), or by email at
contactus@kingsdaleshareholder.com.
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 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 Limited. 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: 30/05/2012 07:07:00 Supplied by www.sharenet.co.za
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