First Uranium announces CDN$130 million offering of unsecured convertible debentures


    TORONTO and JOHANNESBURG, South Africa, April 16 /CNW/ - First Uranium
Corporation (TSX:FIU, JSE:FUM) (ISIN:CA33744R1029) ("First Uranium" or "the
Company") today announced that the Company has engaged a syndicate of
investment banks led by RBC Capital Markets for a private placement offering
of unsecured convertible debentures ("Debentures") in the aggregate principal
amount of CDN$130 million (the "Offering") to be marketed on a best efforts
    The terms of the Offering are expected to be finalized on or about
April 18, 2007. The Offering is subject to certain conditions including the
approval of the Toronto Stock Exchange and the Johannesburg Stock Exchange.
    The Company intends to use the net proceeds from the Offering:

    -   to fund a drilling program and feasibility study in respect of the
        possible expansion of its Ezulwini underground uranium and gold mine
        project in South Africa;
    -   together with the net proceeds of the December 2006 initial public
        offering to fund the development of the Company's Ezulwini
        underground mining project and its Buffelsfontein tailings recovery
        project, also in South Africa; and
    -   for general corporate purposes.

    The Company is currently working on re-commissioning the Ezulwini project
with the intention to start hoisting uranium ore and gold production in
October 2007 and is scheduled to complete construction of new uranium and gold
plants by June 2008. As noted above, a portion of the net proceeds of the
Offering will be used to fund an exploration program and a feasibility study
in respect of the possible expansion of the Ezulwini project. In particular,
the exploratory work is intended to confirm whether sufficient inferred
uranium and gold resources at Ezulwini can be converted to the measured and
indicated categories to justify:

    -   the construction of a new 250,000-tonne per month shaft to increase
        the amount of ore that could be hoisted to the surface and provide
        easier access to future extensions of the underground operation; and
    -   an expansion of the capacity of the planned uranium plant from
        100,000 to 350,000 tonnes per month.

    In conjunction with the Offering, Simmer & Jack Mines, Limited
("Simmers"), the holder of approximately 67.2% of the issued and outstanding
common shares of First Uranium, has agreed to enter into a securities lending
arrangement with RBC Capital Markets. Simmers has no current intention to sell
any of its shareholding interest in First Uranium and has agreed to enter into
the securities lending arrangement solely for purposes of increasing the
liquidity of First Uranium's common shares.
    This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.

    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 including, without limitation,
statements regarding processing and development plans and future plans and
objectives of First Uranium are forward-looking statements (or forward-looking
information) that involve various risks and uncertainties. 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.
    Important factors could cause actual results to differ materially from
First Uranium's expectations. Such factors include, among others: the actual
results of the planned feasibility studies on First Uranium's projects; the
actual results of additional exploration and development activities at First
Uranium's projects; the timing and amount of estimated future production and
the costs thereof; capital expenditures; the costs and timing of the
development of First Uranium's projects; the availability of any additional
capital required to bring future projects into production; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; future prices of commodities; the failure of plant, equipment or
processes to operate as anticipated; accidents; labour disputes; delays in
obtaining governmental approvals, permits or financing or in the completion of
development or construction activities; currency fluctuations, as well as
those factors discussed under "Risk Factors" in First Uranium's final
prospectus dated December 12, 2006 as filed with securities regulatory
authorities in Canada. Although First Uranium has attempted to identify
important factors that could cause actual results to differ materially, there
may be other factors that cause results not to be as anticipated, estimated or

    About First Uranium Corporation

    First Uranium Corporation is focused on the development of South African
uranium and gold mines with the goal of becoming a significant producer
through the re-opening and development of the Ezulwini underground mine, and
the construction of the Buffelsfontein tailings recovery facility. First
Uranium also plans to grow production by pursuing acquisition and joint
venture opportunities.

    First Uranium Corporation
    1240-155 University Avenue, Toronto, ON Canada M5H 3B7

For further information:

For further information: Gordon Miller, President and Chief Executive
Officer, at +27 11 830 0390; or Bob Tait, VP Investor Relations, at (416)
558-3858, or

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