June 9, 2012 / 12:22 AM / 5 years ago

Investor offers to buy 26 percent stake in First Uranium

2 Min Read

(Reuters) - Canadian miner First Uranium Corp FIU.TO said Kumvest Pvt Ltd will offer to buy a 26 percent stake in the company at 37 Canadian cents per share, a premium of almost 95 percent to the stock's Friday close, if some conditions are met.

Sandton, Johannesburg-based Kumvest, a holding company with a diversified portfolio of public and private companies, is owned by financier Mandla "Bear" Kumalo, according to the company's website.

Kumvest's conditions include an opposition by First Uranium shareholders to the sale of the company's Ezulwini mine to Gold One International Ltd, and the appointment of a new management team.

"Based upon limited due diligence of Kumvest the board of directors of FIU has determined that Kumvest styles itself as a holding company but can find no specific information about its interests," First Uranium said.

In April, the company said Waterpan Mining Corp and Transalloys Ltd offered to pay $80 million for its gold-uranium mine in South Africa.

First Uranium shares closed at 19 Canadian cents on the Toronto Stock Exchange on Friday.

Reporting by Maneesha Tiwari in Bangalore; Editing by Joyjeet Das

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