First Uranium’s $405m assets offload hits another snag
11th Jun 2012
JUNE 11 – First Uranium Corp has received another conditional proposal that is threatening the company’s bid to sell off its two main assets, both of which are in South Africa, for $US405M.
The Canadian company has done a deal to sell its Mine Waste Solutions tailings recovery operations (MWS) to AngloGold Ashanti for $335M and its Ezulwini gold/uranium mine to Gold One Intl for $70M.
The latest curve ball has come from Kumvest PL, which has supported the MWS sale but is now against the Ezulwini sale, both of which will be put to shareholders on June 13.
Further, Kumvest says that, subject to certain conditions, it is prepared to buy 26% of FIU at $C0.37cps, provided shareholders vote against the Ezulwini sale, appoint a new management team and 4 non-executive directors, including a new chairman, and that the new management team be given 90 days to present a turn-around plan.
Kumvest says it has the support of about 20% of the shareholders, which include the Olma Investment Group and Nicholas Betsky. However, FIU says that, subsequent to the Kumvest offer, Betsky emailed FIU saying the shareholder group does not support Kumvest's proposal with respect to the MWS sale, making it unclear as to whether Kumvest does have the shareholder support it claims.
FIU describes Kumvest as a self-styled holding company, but can find no specific information about its interests. It warns shareholders the Kumvest offer is highly conditional and includes no evidence of financing.
Olma Investments has said the price for both MWS and Ezulwini is too low and will vote against the deals.
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- EVENTS
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- UNDERGROUND
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- VIEW FROM THE WEST END
- Show me the money