Value Microcaps Junior Miners

[Bobwins]

opportunity or black hole?

FIU.to/FURAF.pk +.035 to C$.18

First Uranium has been struggling. Their restarts in Uranium mines in South Africa have struggled. In March they agreed to sell two mines to two different large miners. Upon closing, they would distribute approximately C$.33 to stockholders. Doesn't say WHEN it would close and there is apparently another party trying to get financing to buy FIU at .50 but deadlines and loan maturities are coming so the vote next week could be crucial.

Already popped from C$.08 to current .185 but still well below C$.33.

First Uranium Corp
Symbol C : FIU
Shares Issued 237,882,965
Close 2012-06-05 C$ 0.08
Recent Sedar Documents

View Original Document
First Uranium estimates distribution from Ezulwini sale


2012-06-06 17:37 ET - News Release


Mr. John Hick reports

FIRST URANIUM CORPORATION UPDATES THE USE OF PROCEEDS FROM THE PROPOSED SALE OF MINE WASTE SOLUTIONS AND EZULWINI GOLD MINES

On March 2, 2012, First Uranium Corp. has reached an agreement to sell Mine Waste Solutions and its subsidiaries (MWS) to AngloGold Ashanti Limited (AGA) and an agreement to sell Ezulwini gold mine and related assets to Gold One International Limited.

In that announcement and in a follow-up news release dated April 19, 2012, the company provided an expected pro forma use of proceeds from the completion of the transactions and an update, as at April 19, 2012, with respect thereto. Subsequently, the company has continued to expend finances for sustaining capital required for its operations and has experienced operating losses at the Ezulwini operations and cash flow at the MWS operations has been negatively affected by underperformance due to clay handling issues. Consequently, the company has drawn down the $10-million (U.S.) loan facility provided by Gold One under the terms of that agreement and this amount plus interest is repayable in full upon the earlier of the termination of the Gold One agreement and the closing of the transaction with Gold One. The negative impact of the operating losses on the expected pro forma use of proceeds has been offset primarily by favourable movements in spot foreign exchange rates, which are still subject to change upon closing of the transactions.

The company has updated the expected pro forma use of proceeds provided in the earlier announcements and replaced it with the following:

Pro forma use of proceeds

Upon completion of the transactions, the company will receive a total of $405-million (U.S.) in cash at closing of which $30-million (U.S.) will be held in escrow accounts. The company now expects that it will make the following initial payments(1) to security holders from the proceeds received on the closing of the transactions, after deducting approximately $19-million (U.S.) in operating and transaction-related costs(2):

Notes -- $154.9-million (U.S.);
Debentures -- $140.7-million (U.S.) (including interest from Dec. 31, 2011, to March 2, 2012);
Gold One loan -- $10.2-million (U.S.) (including interest);
Shareholders -- $50.2-million (U.S.) (represents approximately 22 Canadian cents per share).
(1) These amounts are approximate and subject to change due to, among other things, currency fluctuations (conversion rates for the above dollar values were based on Bank of Canada noon rate as of June 4, 2012) and results of operations.

(2) These amounts include, among other things, retention and severance payments, payments owing to Vulisango (Proprietary) Limited (the Company's Black Empowerment partner) upon termination of the management agreement with Vulisango dated Aug. 25, 2011, corporate costs to sustain the company to the end of the escrow period, and payments to financial, legal and other advisers.

The balance of the finances held in escrow will be disbursed following the release of the escrow accounts. Assuming no claims are made, the amount available for distribution will be $30-million (U.S.) which the company intends to distribute as soon as legally permissible as follows:

Debentures -- $4.3-million (U.S.);
Shareholders -- $25.7-million (U.S.) (represents approximately 11 Canadian cents per share).
Therefore, based on the above assumptions and calculations, as of the date hereof, the company anticipates that the total distribution to shareholders could equal approximately 33 Canadian cents per share. These amounts are approximate and remain subject to further change.

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 e-mail at [e-mail].

We seek Safe Harbor.