South Africa's Kumvest seeks to block First Uranium asset sale to Gold One

Kumvest Pvt Ltd, a little known South Africann-base metals company, yesterday said that it will acquire a 26-per cent stake in First Uranium Corp if the Canadian miner agrees to some conditions.

Sandton, Johannesburg-based Kumvest, which claims to be a holding company with a diversified portfolio of public and private companies, has offered to pay 37 Canadian cents per share, a premium of nearly 95 per cent to the stock's yesterday closing price.

Kumvest's conditions include First Uranium shareholders to oppose the sale of the company's Ezulwini mine to Gold One International Ltd, and the appointment of a new management team.

In March Toronto-based First Uranium, a gold and uranium miner, had  proposed selling 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. (See: Canada's First Uranium to sell two South African assets for $405 million)

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

AngloGold Ashanti is the largest shareholder in First Uranium, with 19.8-per cent stake, and both will require shareholder approval as well as its lenders.