First Uranium seeks OK to amend 4.25% convertibles due 2012

Trades will be made on interest-flat basis from Tuesday forward

By Angela McDaniels

Tacoma, Wash., March 5 - All trades in First Uranium Corp.'s C$150 million of 4.25% senior convertible debentures due June 30, 2012 will trade on an interest-flat basis beginning on Tuesday, according to a Monday news release from the company.

The company plans to sell Mine Waste Solutions and its subsidiaries and its Ezulwini gold mine in two transactions. In order to complete the transactions, some amendments to the indenture must be approved by the holders. The holders must agree that no interest on the convertibles will accrue following the March 2 announcement date of the transactions.

All trades made from the last interest payment date, Dec. 31, through March 2 were completed on an accrued-interest basis. This outstanding interest obligation will be paid by the company once it closes the transactions.

If the transactions are not completed, the interest obligations on the convertibles will be due and owing.

Similarly, the company will ask the holders of its ZAR 418.6 million of secured convertible notes due March 31, 2013 and C$110 million of notes due March 31, 2013 to agree that no interest will accrue after March 31, assuming the completion of the Mine Waste Solutions transaction. If the Mine Waste Solutions transaction is not completed as announced, interest obligations will be due and owing.

First Uranium is a gold and uranium mining company based in Toronto.

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