Debts lead First Uranium to sell off assets

First Uranium to sell two South African assets for $405 mln, Mar 2, 2012  (Reuters) – First Uranium Corp said it would sell two assets in South Africa for $405 million, as the gold and uranium miner scrambles to liquidate itself to pay off its debts.

The company will sell Mine Waste Solutions, a tailings recovery project, to South Africa-based AngloGold Ashanti Ltd for $335 million in cash.

First Uranium also said it would sell its stake in First Uranium Ltd, which owns the Ezulwini Mining Co, to Australian miner Gold One International Ltd for $70 million. Gold One will also provide a $10 million loan facility to First Uranium.

The company said it is moving ahead with plans to liquidate the company and will use the proceeds to pay its securityholders and shareholders…. http://af.reuters.com/article/investingNews/idAFJOE8210CP20120302?feedType=RSS&feedName=investingNews

Uranium company on its last legs?

What will happen to First Uranium? First Uranium is looking at a distress sale of assets to settle upcoming debts, a move that would have a number of implications for shareholders Christy Filen , 22 Feb 2012   JOHANNESBURG (MINEWEB) – 

It is no secret that First Uranium is in a pickle. Releasing a forecast that shows its cash will run out by the end of March will be cold comfort to shareholders and creditors alike…. First Uranium has turned to what is conceivably its only option and that is a distress sale of its assets in an effort to settle upcoming debts….. As if this wasn’t enough First Uranium’s Ezulwini operation is not making the gradeand its Mine Waste Solutions (MWS) is fighting licensing issues with environmentalists and the Department of Mineral Resources. In terms of the results of an impairment exercise of the Ezulwini Mine’s assets, an impairment adjustment of $180m was recognised in the company’s financial statements…. ”The Company’s ability to continue as a going concern is dependent upon its ability to bring these proposed transactions to fruition” said First Uranium….. http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=145826&sn=Detail&pid=102055

Uranium miners slash production due to uncertainty about demand

Nuclear Uncertainty Causes Uranium Production Pullback The Bedford Report Provides Investment Research on Denison Mines & First Uranium 16 June NEW YORK, NY–(Marketwire – Jun 15, 2011) – Uranium spot prices are facing downward pressure this month amidst uncertainty regarding global nuclear demand. These consumption worries have led several uranium explorers to slash production estimates going forward. The Bedford Report examines the outlook for companies in the Uranium Sector and provides equity research on Denison Mines Corporation (NYSE Amex: DNN) (TSX: DML) and First Uranium Corporation (TSX: FIU)…….http://www.marketwire.com/press-release/nuclear-uncertainty-causes-uranium-production-pullback-nyse-amex-dnn-1526989.htm

Uranium companies’ woes

Paladin reacts to share price drop, SMH, June 10, 2011 Uranium miner Paladin Energy Ltd has sought to dampen market rumours about the company’s financing arrangements, a potential capital raising and a potential sale by Newmont Mining of its 6.71 per cent stake in Paladin.

Paladin issued a statement on Friday to clarify its position, after the company’s shares came under “considerable selling pressure” for two days……http://news.smh.com.au/breaking-news-business/paladin-reacts-to-share-price-drop-20110610-1fvoe.html

EYE ON EQUITIES

Analyst urges caution as First Uranium dips to all-time lows, DARCY KEITH Globe and Mail Update  Jun. 09, Shares in First Uranium Corp. (FIU-T0.56-0.02-3.45%) remain snuggled close to all-time lows after getting smacked Wednesday in response to weaker than expected fourth-quarter results. A resurgence in negative sentiment toward uranium producers after the Japanese nuclear crisis hasn’t helped matters.

Raymond James Ltd. analyst Bart Jaworski thinks investors may be wise backing away from the stock for the time being…..http://www.theglobeandmail.com/globe-investor/investment-ideas/features/eye-on-equities/analyst-urges-caution-as-first-uranium-dips-to-all-time-lows/article2053830/

 

Losses to uranium company

First Uranium posts Q3 loss on higher costs, forex loss Feb 16 (Reuters) – First Uranium Corp (FIU.TO) posted a quarterly loss, hurt by higher corporate expenses and a $7.4 million foreign currency loss.

For the third quarter ended Dec. 31, the company reported loss of $14.4 million, or 9 cents a share, compared with a profit of $1.3 million, or 1 cent a share, a year ago……… In January, South African authorities withdrew environmental authorization for a new tailings storage facility at First Uranium’s key Mine Waste Solutions tailings recovery project.

UPDATE 1-First Uranium posts Q3 loss on higher costs, forex loss | Reuters

Uranium mining company broke environmental law

Business Report – Web: State finds First Uranium broke the law February 8, 2010By Asha Speckman First Uranium’s application for an environmental authorisation licence was withdrawn because it had contravened law and begun development of its minewaste tailings processing facility at its Ezulwini mine near Potchefstroom without proper approval.