First Uranium seeks OK to amend technical test under convertibles

By Susanna Moon

Chicago, April 26 - First Uranium Corp. said it is soliciting consents for its 7% secured convertible notes due March 31, 2013 and 11% secured convertible notes due March 31, 2013 to amend the technical completion test under the Gold Wheaton Chemwes purchase agreement.

The amendments would allow First Uranium the option to satisfy the key criteria component of the technical completion test during the steady state period, according to a company press release.

The company said this provides it with the opportunity to satisfy the technical completion test in a shorter time frame, allowing more flexibility to optimize the mine plan and complete the ramp-up of the expanded gold plant efficiently.

Holders may deliver consents until 5 p.m. ET on May 2.

Under the note indentures, provisions of the Gold Wheaton Chemwes Gold purchase agreement, including the technical completion test, may not be amended or revised without the consent of the holders of at least a majority of the outstanding convertibles.

The technical completion test comprises two components and is required to be satisfied by Sept. 1 to avoid incurring further obligations including penalties.

The company said that it believes the technical completion test is on track to meet the deadline but would like the option to satisfy the key criteria component during the steady state period.

Franco Nevada Corp. recently acquired Gold Wheaton, and First Uranium indirectly owns 100% of the equity of Chemwes (Pty.) Ltd. First Uranium and Chemwes entered into a purchase agreement with Gold Wheaton Corp and Gold Wheaton (Barbados) Corp. on Nov. 28, 2008.

First Uranium is a Vancouver, B.C.-based gold and uranium mining company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.