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First Uranium shareholders approve asset divestitures

Published: 15:29 13 Jun 2012 EDT

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First Uranium Corp. (TSE:FIU) said shareholders overwhelmingly voted in favour of the divestiture of two Africa-focused uranium and gold assets for $405 million, as the miner seeks to wind down its operations.

The news sent the gold and uranium miner’s share price up by 1.5 cents, or 6.67 per cent, to 24 cents each on the Toronto Stock Exchange.

The first agreement, which shareholders voted 91.7 per cent in favour, will see the company sell Mine Waste Solutions, a tailings recovery project, to AngloGold Ashanti for $335 million in cash.

In addition, First Uranium said shareholders voted 91.7 per cent for the sell-off of its Ezulwini Mine, to Gold One International for $70 million.

"The company is extremely gratified by the support shown by its stakeholders during these very difficult times," lead independent director John Hick said in a statement.

The miner said noteholders of First Uranium and Mine Waste Solutions also voted in favour of the divestitures, at the joint meeting.

The sales will bring in enough capital to pay off noteholders and provide some compensation to shareholders who initially opposed the transactions.

First Uranium, which saw its market cap decline sharply in the face of operational problems, and mounting debt, expects to complete the transactions by the end of this month.

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