First Uranium enters Management Agreement with BEE Company
TORONTO AND JOHANNESBURG, Aug. 29, 2011 /CNW/ --
TORONTO AND JOHANNESBURG, Aug. 29, 2011 /CNW/ - First Uranium
Corporation (TSX:FIU), (JSE:FUM) (ISIN:CA33744R1029) ('First Uranium'
or 'the Company') announced today that it has entered into an agreement
with Vulisango Holdings (Proprietary) Limited ('Vulisango'), a Black
Economic Empowerment ('BEE') company, for the provision of certain
services, including, assisting the Company in complying with the
Mineral and Petroleum Resources Development Act and assisting and
giving guidance to the Company with regard to its policies in
accordance with the Mining Charter. Vulisango will receive a monthly
fee of R400,000 (US$55,200). The agreement has an indefinite term, but
it may be terminated by agreement between the parties, on a change of
control of First Uranium, or, in the event of a material breach of the
agreement, by the non-defaulting party.
In addition to securing Vulisango's services under the management
agreement, the Company will continue to work with Vulisango in
considering options to improve the Company's BEE credentials subsequent
to the disposal by Village Main Reef of 19.79% of its 25.5%
shareholding in First Uranium to Anglo Gold Ashanti as announced in a
news release on July 22, 2011.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of
becoming a low-cost producer of gold and uranium through the expansion
of the underground development to feed the new gold and uranium plants
at the Ezulwini Mine and the ramp-up of production at the Mine Waste
Solutions (MWS) tailings recovery facility following the completion of
a significant gold capital expansion program in May 2011. Both
operations are located in South Africa.
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 the processing and development
plans, and the future plans and objectives of First Uranium are
forward-looking statements (or forward-looking information) that
involve various estimates, assumptions, risks and uncertainties. In
addition, as Village Main Reef has sold a significant portion of its
interest in First Uranium, the Company or its subsidiaries may be
required to issue securities or enter into other arrangements to
increase BEE investment in the Corporation in order to maintain
compliance with BEE requirements as required by the applicable law. For
more details on these estimates, assumptions, risks and uncertainties,
see the Company's most recent Annual Information Form ('AIF') and
Management's Discussion and Analysis ('MD&A') 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.
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John Hick
Special Committee Chairman
1 416 306 3083