Gordon Miller, CEO, Simmer & Jack Mines and First Uranium Corporation.
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First Uranium raises C$203m
David McKay
Posted: Thu, 14 Dec 2006

[miningmx.com] -- FIRST Uranium, the exploration company, is to raise C$203m when it lists on the Toronto Stock Exchange, and said it was negotiating with “a third party” to buy additional assets relating to its flagship Ezulwini mine.

A syndicate of underwriters, led by RBC Capital Markets, have agreed to buy 29 million shares for C$7.00/share. An over allotment option of about 4.4 million shares has also been granted. Closure of the offer, when First Uranium is expected to start trading, is pencilled in for around December 20.

The announcement was issued by JSE listed Simmer & Jack Mines (Simmers) which is selling the Ezulwini and Buffelsfontein gold and uranium assets to First Uranium. Following the listing, Simmers will own about 69.9% of First Uranium.

“The net proceeds from the offering will be used by the company primarily to fund the development of the Ezulwini and Buffelsfontein projects, including the acquisition from a third party of certain surface and underground assets relating to the Ezulwini mine,” Simmers said.

First Uranium needs an estimated C$347m (US$300m) to pay for building two gold and uranium plants over the next three years. The C$147m balance would be supplied through a loan provided by South African bank, Investec.

Simmers said earlier this year that it hoped to produce 800,000 oz/year of gold. Estimated uranium resources total 280 million pounds of uranium. “The North American capital markets are the ideal place to raise capital for large-scale uranium and gold projects,” said Gordon Miller, CEO of Simmers and First Uranium in a November 16 interview.
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First Uranium’s assets consist of a gold and uranium tailings resource near the Buffelsfontein underground mine in South Africa’s North West province, and Ezulwini, an underground uranium and gold mining operation formerly known as Randfontein 4 shaft when owned by Harmony Gold.

Miller will be the CEO of First Uranium. The company’s board will be supplemented by Barrick Gold director, Robert Franklin and independent directors, John Hick and Patrick Evans, who was formerly CEO of SouthernEra Resources.

First Uranium’s Buffelsfontein project will involve the construction of an above ground tailings plant to process an estimated 291 million tons of tailings in nine dumps near the property. Life of mine is estimated at 14 years.