TORONTO AND JOHANNESBURG, Jan. 21,
2013 /CNW/ - First Uranium Corporation (NEX:FIU.H) (JSE:FUU)
(ISIN:CA33744R5047) ("First Uranium" or "the Corporation") today
announced that it received US$25
million, being the balance of the US$335 million purchase price for the shares of
Mine Waste Solutions (Proprietary) Limited, which amount had been
held in escrow pursuant to the sale agreement (the "AGA Agreement")
dated March 2, 2012 with AngloGold
Ashanti Limited ("AGA").
The US$5 million
balance of the US$70 million sale
proceeds from the sale of First Uranium Limited, which owns all of
the shares of Ezulwini Mining Company (Proprietary) Limited, to
Gold One International Limited ("Gold One") continues to be held in
escrow pending the end of the Gold One escrow period on
February 1, 2013, after which this
amount, less any claims made and payable in accordance with the
Gold One Agreement, if any, will be paid to First Uranium.
As previously reported, as both transactions
were completed and implemented on or before October 5, 2012, in accordance with the trust
indenture for the 4.25% unsecured convertible debentures (the
"Debentures"), the final 3% of the principal amount of the
outstanding Debentures being CAD$4.5
million, which was payable only to the extent of the
Corporation receiving funds from the escrows, to a maximum of
CAD$4.5 million, is now payable to
the holders of the Debentures. Upon receipt of the US$25 million referred to above, and in
accordance with the trust indenture for the Debentures, on
January 28, 2013, the Corporation
will pay to the indenture trustee for the Debentures CAD$4.5 million (being 3% of the principal amount
owing as of April 30, 2012) for
further payment to the holders of the Debentures.
Once the amount of the escrow funds to be
released in accordance with the Gold One Agreement is determined,
and subject to the establishment of a reserve for any continuing
and contingent obligations of the Corporation, the Board of the
Corporation will determine an additional amount to be distributed
to the holders of the Units from this amount and the balance of the
AGA escrow amount less the CAD$4.5
million.
The Corporation will also consider the most
efficient and orderly way in which to distribute to the
shareholders all remaining property of the Corporation (after
payment of the Corporation's creditors). The Corporation may then
proceed to be wound up and dissolved. However, the Board has not
made any decisions with respect to the windup and dissolution at
this time.
Cautionary Language Regarding Forward-Looking
Information
This news release contains and refers to forward-looking
information based on current expectations. All other statements
other than statements of historical fact included in this release
are forward-looking statements (or forward-looking information).
The Corporation's plans involve various estimates and assumptions
and its business is subject to various risks and uncertainties. For
more details on these estimates, assumptions, risks and
uncertainties, see the Corporation's most recent Annual Information
Form and most recent Management Discussion and Analysis on file
with the Canadian provincial securities regulatory authorities on
SEDAR at www.sedar.com. These forward-looking statements are made
as of the date hereof and there can be no assurance that such
statements will prove to be accurate, such statements are subject
to significant risks and uncertainties, and actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements that are included herein,
except in accordance with applicable securities laws.
www.firsturanium.com
SOURCE First Uranium Corporation