First Uranium receives buyout bid for South Africa mine

Tue Apr 24, 2012 6:44am EDT
 
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(Reuters) - Canadian miner First Uranium Corp FIU.TO said it received an unsolicited offer for its Ezulwini mine in South Africa from Waterpan Mining Corporation and Transalloys Ltd.

First Uranium said Waterpan Mining and Transalloys have offered to pay $80 million for the gold-uranium mine, of which $10 million will be paid in advance as short-term bridge financing.

First Uranium had agreed to sell the Ezulwini mine to Australian miner Gold One International Ltd GDO.AX for $70 million earlier this month.

The gold and uranium miner has also put Mine Waste Solutions, its tailings recovery project in South Africa, up for sale as it looks to liquidate itself to pay off debts.

The company's shares, which have lost 58 percent of their value in the last three months, closed at 12 Canadian cents on Monday on the Toronto Stock Exchange.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Roshni Menon)