First Uranium Corp.(FIU.TO: Quote) said it received a conditional proposal letter from Kumvest (Pty) Ltd. The letter states that Kumvest supports the previously announced transaction with AngloGold Ashanti Limited, which would result in the disposal of Mine Waste Solutions and its subsidiaries, as proposed by the board of directors of FIU.
However, Kumvest goes on to state that stakeholders should be advised that Kumvest recommends that the sale of Ezulwini to Gold One International Limited be voted down at the shareholders meeting to be held on June 13, 2012.
Kumvest further stated that it would offer to subscribe for common shares of FIU equal to 26% of FIU's current issued and outstanding shares, at a price of C$0.37 per share.
The Kumvest proposal requires that certain conditions be met, which include (a) a vote against the sale of Ezulwini; (b) the appointment of a new management team and four appropriate, qualified, experienced non-executive directors including a new Chairman of the board of directors; (c) that the new management team be given 90 days to present a turn-around plan and (d) prior to its offer becoming unconditional, Kumvest will be given access to records of the Company to perform due diligence.
In its letter Kumvest stated it has the support of approximately 20% of the shareholders and attaches a letter signed by Nicholas Betsky and Eric Sprott representing Sprott Asset Management, Olma Investment Group, Stratton Enterprises Incorporated and Pratto Corporate Services or "Shareholders Group".
Betsky forwarded an email to FIU in which he stated that the Shareholder Group does NOT support Kumvest's proposal with respect to the sale of Mine Waste Solutions; and, accordingly, it is unclear whether Kumvest continues to have the voting support and backing of the Shareholder Group.
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by RTT Staff Writer
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