For the Management Discussion & Analysis and Financial Statements please
refer to SEDAR at www.sedar.com. All amounts are in US dollars ("$"), except where otherwise indicated.
TORONTO and JOHANNESBURG, Nov. 14, 2013 /CNW/ - First Uranium
Corporation (NEX:FIU.H) (JSE:FUU) (ISIN:CA33744R5047) ("First Uranium"
or "the Corporation") today announced its financial results for the six
months ended September 30, 2013.
April 1, 2012 - June 30, 2012
July 1, 2012 - September 30, 2012
October 1, 2012 - December 31, 2012
January 1, 2013 - March 31, 2013
April 1, 2012 - March 31, 2013
April 1, 2013 - June 30, 2013
July 1, 2013 - September 30, 2013
October 1, 2013 - December 31, 2013
January 1, 2014 - March 31, 2014
April 1, 2013 - March 31, 2014
As previously announced on October 29, 2013, First Uranium entered into
a definitive agreement (Arrangement Agreement) with Algold Resources
Ltd. (Algold) pursuant to which Algold will acquire, by way of a
court-approved plan of arrangement, all of the issued and outstanding
units (FIU Units) of First Uranium (the Transaction).
Pursuant to the terms of the Arrangement Agreement, it is intended that
First Uranium shareholders will receive 0.0729849 of an Algold share
for each Unit held. In addition, for every full Algold share issued to
a First Uranium shareholder, such holder will receive ½ of one Algold
common share purchase warrant (the "Algold Warrants"). Each full
Algold Warrant entitles the holder thereof to purchase one Algold share
at a price of $0.20 per Algold share at any time for a period of
eighteen months following the issuance of the Algold Warrants. Full
details with respect to the terms of the Transaction and the
Arrangement Agreement are included in the management information
circular dated November 8, 2013, which was mailed to all registered
holders of units of the Corporation, as at the record date, on November
13, 2013, and which is available on SEDAR at www.sedar.com.
Pro forma the Transaction, First Uranium shareholders will own
approximately 52% of Algold (based on fully diluted in the-money shares
outstanding) subject to adjustments pursuant to the Arrangement
Summary of Financial Results
The Corporation reported losses from its continuing operations of $0.3
million in Q2 2014 (Q2 2013: loss of $5.6 million) and $0.3 million in
2014 YTD (2013 YTD: $16.0 million).
Prior to the disposal of its discontinued operations in Q2 2013, the
Corporation reported a net profit from its discontinued operations of
$74.3 million in Q2 2013, comprised of a profit of $78.9 million from
the disposal of First Uranium's two operations offset by a loss of $4.6
resulting from the activities of the operations up to date of disposal.
For 2013 YTD, the Corporation reported profits from its discontinued
operations of $108.6 million, comprised of the profit from disposal of
the operations as well as a net profit of $29.7 resulting from the
activities of the operations. The primary driver for the profit from
operating activities in 2013 YTD was the derivative income related to
the gold stream transactions compared to the derivative expense
recognized in previous reporting periods.
During Q2 2014 and 2014 YTD, the Corporation utilized $0.2 million and
$0.7 million, respectively, of its remaining cash on ongoing corporate
expenses. During Q2 2013 and 2013 YTD, the Corporation (including its
discontinued operations) utilized cash from its operations of $14.1
million and $10.1 million, respectively.
During Q2 2013 and 2013 YTD, First Uranium raised $338.4 million net
cash proceeds from the disposal of the operations of which $60.3
million was placed in escrow accounts for a six-month period. The
Corporations operations utilized $4.3 million in Q2 2013 and $7.9
million during 2013 YTD on capital projects and other investing
activities related to its discontinued operations.
As at September 30, 2013, the Corporation's current assets were $4.5
million (March 31, 2013: $4.6 million). The Corporation's current
liabilities amounted to $1.5 million (March 31, 2013: $1.3 million),
consisting of a $0.9 million income tax payable provision and $0.6
million of trade and other payables.
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 Management Information Circular, Annual
Information Form and Management's 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
SOURCE: First Uranium Corporation
For further information:
Mary Batoff, +1 416 306 3072 or firstname.lastname@example.org