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.
First Uranium (TSX:FIU) announced Monday it has sold its South African-based Elzuwini Mining Co. to Gold One International for US$70 million, transaction that should be completed by June 29.
First Uranium Corp. recently announced it also has signed a deal to sell its Mine Waste Solutions tailings recovery operation in South Africa and wind up operations there.
The company said AngloGold Ashanti Ltd. has agreed to pay $335 million for Mine Waste Solutions.
AngloGold Ashanti is the largest shareholder in First Uranium, with a roughly 19.8 per cent stake in the company.
Both deals will require the approval of shareholders as well as creditors.
The Ezulwini Mine is located approximately 40 kilometers from Johannesburg, in the West Rand Goldfield of the Witwatersrand Basin, and is contiguous to Gold One’s Cooke Operations.
Ezulwini is an underground mine that has two primary tabular ore bodies which are approximately 400 metres apart. The Upper Elsburg (UE) ore body, where the majority of mining has been done to date, is primarily a gold deposit. The Middle Elsburg (ME) ore body is a gold and uranium bearing deposit that has been less extensively exploited.
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