Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
TSX- and JSE-listed First Uranium (TSX:FIU) (JSE:FUM) announced Monday it 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 dated March 2, 2012 with AngloGold Ashanti (NYSE:AU).
The $5 million balance of the $70 million proceeds from the sale of First Uranium, which owns Ezulwini Mining, to Gold One International continues to be held in escrow pending the end of the Gold One escrow period on February 1. After that, the amount minus any claims made and payable under the Gold One agreement, if any, would be paid to First Uranium.
Owing to both transactions being completed and 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 added it would pay to the indenture trustee for the debentures 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 on January 28.
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