HomeGoldWaterpan seeks to take over First Uranium in full

Waterpan seeks to take over First Uranium in full

First Uranium’s Mine
Waste Solutions plant
“’ one of the two assets
Waterpan is seeking
to take over
Johannesburg, South Africa — 04 June 2012 – Waterpan Mining Consortium (WMC) “’ which, in a consortium with Russia’s Renova Group had a potential US$80-million takeover offer for cash-strapped First Uranium snubbed in April “’ wants to go it alone for the whole of the company, saying it is in the final stages of raising funds to make a substantial offer for the stricken gold miner.

Miningmx reports that the announcement comes as First Uranium shareholders are set to vote on 13 June for the sale of its two key assets, Ezulwini and Mine Waste Solutions (MWS), for a collective amount of US$405 million to Gold One International and AngloGold Ashanti.

Around US$320 million of the sales proceeds would go towards the settlement of debt, with shareholders standing in line for distributions of an estimated US$0.11 per share.

“We are aware that a significant number of the minorities are dissatisfied with the offer and will vote against it, with one of the minorities pledging its support to WMC management should WMC table an offer to acquire FIU,” read an edited company announcement posted on Bloomberg. “The support is on the back of the depth of experience in the WMC management team and confidence in the teams to turnaround FIU,” it added.

“WMC is in the final throes of raising the necessary funds to enable it to table a substantial offer to acquire 100% of First Uranium, including its primary assets Ezulwini Mine and MWS. If successfully concluded, the fund-raising will also allow WMC to service the FIU debts.”

WMC director Chopper van der Bijl told Miningmx he expected to have a final offer in place towards the end of this week.

Source: Miningmx. For more information, click here.