[miningmx] — SHAREHOLDERS in First Uranium had to endure one last stomach
blow as the company revised its earlier guidance on distributions from the sale of all
its key assets.
In an update posted on Thursday, First Uranium said shareholders should expect a
payout of around C$0.125 per share following the sale of Ezulwini and Mine Waste
Solutions for a collective $405m, a process that was initiated to cover debt to the
tune of $320m.
The company’s main listing is on Canada’s TSX, with a secondary listing on the JSE.
The revision came after First Uranium told investors in June they stood in line to
receive up to C$0.33/share from the sales process as the company tried to appease
minority shareholders who have threatened to derail the transactions.
“The lower estimate … is due substantially to changes in the Cdn/USD exchange
rates, as well as lower-than-expected gold prices and production from the
operations,’ read a company statement.
A further $30m, currently held in escrow, might be distributed in 2013 should no
claim be made against First Uranium by the buyers of the assets.
One minority shareholder, Russia’s Olma Investments, has already indicated it would
consider legal action should the payout not match the earlier promise of
C$0.33/share. “We are looking into this with our lawyers,’ Nick Betsky, Head of
Equities at Olma, said to Miningmx. “This is bullsh*t.’
Still, the sale of Ezulwini to Gold One International for $70m was completed on
Thursday, while AngloGold Ashanti bought Mine Waste Solutions for $335m.
First Uranium listed to much fanfare in 2007 at C$7/share, but has been dogged by
operational setbacks, governance issues and misfortune ever since.
The majority of the company’s executive and board members, including CEO Deon
van der Mescht, would vacate their positions on Friday. Some of these executives
are due a total payment of some $1.6m in delayed cash and retention bonuses.
Mary Batoff, First Uranium’s former Vice President, Legal and Secretary, would
remain as President and CEO, with Emma Oosthuizen acting as CFO.
