First Uranium gets unsolicited offer for SAfrica mine

Tue Apr 24, 2012 2:18pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

(Reuters) - Canadian miner First Uranium Corp said it received another offer for its Ezulwini mine in South Africa as the company looks to liquidate itself to pay off its debts.

First Uranium, which has a market value of about $29 million, said on Tuesday Waterpan Mining Corp and Transalloys Ltd offered to pay $80 million for the gold-uranium mine. The offer includes $10 million to be paid in advance as short-term bridge financing.

First Uranium, whose financial obligations include C$150 million ($151.8 million) in convertible debt due in June, last month also put Mine Waste Solutions, its tailings recovery project in South Africa, up for sale.

The gold and uranium miner had agreed to sell the Ezulwini mine to Australian miner Gold One International Ltd for $70 million. Gold One will also provide a $10 million loan facility.

First Uranium sold 8,061 ounces of gold in the fourth quarter from the Ezulwini mine.

A special meeting of First Uranium's shareholders will be held on June 13 to decide on the sale of the Ezulwini mine and Mine Waste Solutions, the company said in a statement.

First Uranium remains committed to Ezulwini's sale to Gold One but it will let its shareholders decide whether to go ahead with the sale agreement, the statement added.

The company's shares, which have lost 59 percent of their value in the last three months, were down 8 percent at 11 Canadian cents in afternoon trading on the Toronto Stock Exchange.

(Reporting by Maneesha Tiwari and Shounak Dasgupta in Bangalore; Editing by Roshni Menon, Maju Samuel)