TORONTO (miningweekly.com) – Johannesburg- and Toronto-listed First Uranium Corporation on Monday said it had received $25-million that was the balance of the $335-million sale of its subsidiary Mine Waste Solutions, which had been held in escrow under the sale agreement with AngloGold Ashanti (AGA) dated March 2, 2012.
The $5-million balance of the $70-million proceeds from the sale of First Uranium Limited, which owns Ezulwini Mining, to Gold One International continued to be held in escrow pending the end of the escrow period on February 1, after which this amount, less any claims made and payable under the Gold One agreement, if any, would be paid to First Uranium Corporation.
Owing to both transactions being implemented on or before October 5, 2012, according to the trust indenture for the 4.25% unsecured convertible debentures, the final 3% of the principal amount of the outstanding debentures of C$4.5-million, which was payable when the corporation received funds from the escrows, to a maximum of C$4.5-million, is now payable to the holders of the debentures.
First Uranium said it would, on January 28, pay the indenture trustee C$4.5-million (being 3% of the principal amount owing as of April 30, 2012) for further payment to the holders of the debentures.
Once the amount of the escrow funds to be released according to the Gold One agreement is determined, and after establishing a reserve for any continuing and contingent obligations of the corporation, the First Uranium board would determine an additional amount to be distributed to the holders of the units from this amount and the balance of the AGA escrow amount, less the C$4.5-million.
The corporation could also consider the most efficient and orderly way in which to distribute to the shareholders all remaining property of the corporation, after payment of the corporation's creditors. The corporation may then proceed to be wound up and dissolved.
However, the board has not made any decisions with respect to the wind-up and dissolution at this time.