FIRST URANIUM CORPORATION - First Uranium announces financial results for the six months ended September 30, 2013

Release Date: 15/11/2013 07:05
Code(s): FUU
 
Wrap Text
First Uranium announces financial results for the six months ended September 30, 2013

First Uranium Corporation
(Continued under the laws of Ontario, Canada)
(Registration number 2082276)
(South African registration number 2007/009016/10)
Share code: FUU ISIN: CA33744R5087

15 November 2013

First Uranium announces financial results for the six months ended September 30,
2013.

For the Management Discussion & Analysis and Financial Statements please refer to
SEDAR at www.sedar.com. All amounts are in US dollars (“$”), except where
otherwise indicated.

Toronto and Johannesburg – First Uranium Corporation (NEX:FIU.H) (JSE:FUU)
(ISIN:CA33744R5047) (“First Uranium” or “the Corporation”) today announced its
financial results for the six months ended September 30, 2013.

 Abbreviation   Period                                Abbreviation   Period
 Q1 2013        April 1, 2012 - June 30, 2012         Q1 2014        April 1, 2013 - June 30, 2013
 Q2 2013        July 1, 2012 - September 30, 2012     Q2 2014        July 1, 2013 - September 30, 2013
 Q3 2013        October 1, 2012 - December 31, 2012   Q3 2014        October 1, 2013 - December 31, 2013
 Q4 2013        January 1, 2013 - March 31, 2013      Q4 2014        January 1, 2014 - March 31, 2014
 FY 2013        April 1, 2012 - March 31, 2013        FY 2014        April 1, 2013 - March 31, 2014


Recent Developments

As previously announced on October 29, 2013, First Uranium entered into a definitive
agreement (Arrangement Agreement) with Algold Resources Ltd. (Algold) pursuant to which
Algold will acquire, by way of a court-approved plan of arrangement, all of the issued and
outstanding units (FIU Units) of First Uranium (the Transaction).

Pursuant to the terms of the Arrangement Agreement, it is intended that First Uranium
shareholders will receive 0.0729849 of an Algold share for each Unit held. In addition, for
every full Algold share issued to a First Uranium shareholder, such holder will receive ½ of one
Algold common share purchase warrant (the "Algold Warrants"). Each full Algold Warrant
entitles the holder thereof to purchase one Algold share at a price of $0.20 per Algold share at
any time for a period of eighteen months following the issuance of the Algold Warrants. Full
details with respect to the terms of the Transaction and the Arrangement Agreement are
included in the management information circular dated November 8, 2013, which was mailed
to all registered holders of units of the Corporation, as at the record date, on November 13,
2013, and which is available on SEDAR at www.sedar.com.

Pro forma the Transaction, First Uranium shareholders will own approximately 52% of Algold
(based on fully diluted in the-money shares outstanding) subject to adjustments pursuant to
the Arrangement Agreement.
Summary of Financial Results

The Corporation reported losses from its continuing operations of $0.3 million in Q2 2014 (Q2
2013: loss of $5.6 million) and $0.3 million in 2014 YTD (2013 YTD: $16.0 million).

Prior to the disposal of its discontinued operations in Q2 2013, the Corporation reported a net
profit from its discontinued operations of $74.3 million in Q2 2013, comprised of a profit of
$78.9 million from the disposal of First Uranium’s two operations offset by a loss of $4.6
resulting from the activities of the operations up to date of disposal. For 2013 YTD, the
Corporation reported profits from its discontinued operations of $108.6 million, comprised of
the profit from disposal of the operations as well as a net profit of $29.7 resulting from the
activities of the operations. The primary driver for the profit from operating activities in 2013
YTD was the derivative income related to the gold stream transactions compared to the
derivative expense recognized in previous reporting periods.

During Q2 2014 and 2014 YTD, the Corporation utilized $0.2 million and $0.7 million,
respectively, of its remaining cash on ongoing corporate expenses. During Q2 2013 and 2013
YTD, the Corporation (including its discontinued operations) utilized cash from its operations of
$14.1 million and $10.1 million, respectively.

During Q2 2013 and 2013 YTD, First Uranium raised $338.4 million net cash proceeds from the
disposal of the operations of which $60.3 million was placed in escrow accounts for a six-
month period. The Corporations operations utilized $4.3 million in Q2 2013 and $7.9 million
during 2013 YTD on capital projects and other investing activities related to its discontinued
operations.

As at September 30, 2013, the Corporation’s current assets were $4.5 million (March 31, 2013:
$4.6 million). The Corporation’s current liabilities amounted to $1.5 million (March 31, 2013:
$1.3 million), consisting of a $0.9 million income tax payable provision and $0.6 million of trade
and other payables.

For further information, please contact:
Mary Batoff, +1 416 306 3072 or 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 is subject to various risks and uncertainties. For more
details on these estimates, assumptions, risks and uncertainties, see the Corporation's most recent
Management Information Circular, Annual Information Form and Management’s 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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