By Devika Patel
Knoxville, Tenn., March 12 - First Uranium Corp. said it will raise between C$125 million and C$150 million by selling senior secured convertible notes in a private placement.
The notes, which are due March 31, 2013, are convertible into common shares at an initial conversion price of C$1.30, a 13% discount to the five-day volume weighted average price of the shares. They will be sold in increments of C$1,000, each of which is convertible into 769.2307 shares.
Investors include Simmer and Jack Mines Ltd., which will invest C$40 million equivalent in South African rand-denominated notes, and Gold Wheaton Corp., which will invest C$20 million.
Agent RBC Capital Markets Inc. will market between C$65 million and C$110 million of the notes. If RBC raises more than C$65 million, Gold Wheaton may reduce its C$20 million commitment.
Settlement is expected by March 31.
Proceeds of the offering will be used for capital expenditures, restructuring, financing and interest expenses, and general corporate purposes.
First Uranium is a Vancouver, B.C.-based gold and uranium mining company.
| Issuer: | First Uranium Corp.
|
| Issue: | Senior secured convertible notes
|
| Amount: | C$125 million (minimum), C$150 million (maximum)
|
| Maturity: | March 31, 2013
|
| Price: | Par of C$1,000
|
| Conversion price: | C$1.30
|
| Conversion ratio: | Into 769.2307 shares (per C$1,000 in notes)
|
| Warrants: | No
|
| Investors: | Simmer and Jack Mines Ltd. (for C$40 million equivalent) and Gold Wheaton Corp. (for C$20 million)
|
| Agent: | RBC Capital Markets Inc. (for between C$65 million and C$110 million)
|
| Pricing date: | March 12
|
| Settlement date: | March 31
|
| Stock symbol: | Toronto: FIU
|
| Stock price: | C$1.49 at close March 11
|
| Market capitalization: | C$275 million
|
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