/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
TORONTO and JOHANNESBURG, South Africa, April 19 /CNW/ - First Uranium
Corporation (TSX:FIU, JSE:FUM) (ISIN:CA33744R1029) ("First Uranium" or "the
Company") today announced the pricing of its private placement of 4.25% senior
unsecured convertible debentures (the "Debentures") due June 30, 2012 and an
increase in the aggregate principal amount of Debentures to be sold to
CDN$150 million. The sale of the Debentures is expected to close on May 3,
The Debentures will bear interest at a rate of 4.25% per annum payable
semi-annually and will be convertible into common shares of the Company at
CDN$16.42 per share representing a conversion premium of approximately 37.5%
to the closing price of the shares on the Toronto Stock Exchange (the "TSX")
on April 18, 2007.
The closing of the transaction is subject to certain conditions including
the approval of the TSX and the Johannesburg Stock Exchange.
The syndicate for the offering of Debentures is being led by RBC Capital
Markets and includes Canaccord Capital Corporation, National Bank Financial
Inc., GMP Securities L.P., Cormark Securities Inc., Orion Securities and
The Company intends to use the net proceeds from the sale of the
- to fund a drilling program and feasibility study in respect of the
possible expansion of its Ezulwini underground uranium and gold
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.
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.
This document may contain or refer to forward-looking information based
on current expectations. Forward-looking statements are subject to significant
risks and uncertainties, and other factors that could cause actual results to
differ materially from expected results. These forward-looking statements are
made as of the date hereof and we assume no responsibility to update or revise
them to reflect new events or circumstances.
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
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 firstname.lastname@example.org