[miningmx.com] –FIRST Uranium Corporation said it has closed a previously announced transaction
with Gold Wheaton (Barbados) Corporation (GW).
Upon closing the transaction, GW paid to First Uranium $50m for the right to purchase seven percent of the estimated 5.8 million ounces of life-of-mine gold production from the company’s Ezulwini Mine in South Africa.
“This contract validates the value of our substantial co-product gold production at Ezulwini,” explained Gordon Miller, President and CEO of First Uranium.
“To further strengthen our balance sheet and fund future capital projects, we continue to actively pursue various other financing options and reprioritise certain development and expansion activities to optimize the company’s cash position.”
Under the terms of the transaction, for each ounce delivered to GW, GW shall also pay First Uranium the lesser of $400 per ounce and the prevailing spot price (subject to an annual inflation adjustment of one percent, starting in the fourth year).
Also under the terms of the transaction, the Ezulwini Mine will deliver to GW a guaranteed minimum of 16 500 ounces of gold in calendar 2010 and 19 500 ounces in calendar 2011.
