Canada's First Uranium to sell two South African assets for $405 million

Canada's First Uranium Corp yesterday said that it would sell two assets in South Africa for $405 million, as part of its plan to pay off debts.

Toronto-based First Uranium, a gold and uranium miner, will sell its Mine Waste Solutions, a tailings recovery project, to AngloGold Ashanti for $335 million and the Ezulwini gold mine to Gold One International for $70 million.

Sydney, Australia-based Gold One will also provide a $10 million loan facility to First Uranium.

South Africa-based AngloGold is the largest shareholder in First Uranium, with a 19.79 per cent stake.

First Uranium, which has a market capitilisation of just $50 million, requires to pay $266 million to its lenders in the next 13 months.

The company has started a restructuring process and is planning to liquidateitself in order to use the proceeds to pay its creditors and shareholders.