RE: RE: Bad news priced in? Bank Short form Prospectus has been issued. It is now matter of days that we will get details of the amount & the price. So far Management has refused to indicate the amount required. How can they ask investment bank for placement if they do not have an amount ? RBC would know the amount requested & would have an idea for the price of new equity. At this time some of the institution would also have an estimate.
I would not be surprised if the amount requested is much higher than 50 million.
My reasons are as follows,
In less than a year they have gone through most of $150 million. This amount has been used on capex & to fund huge losses. They are still burning cash. Even when the prices of U & Gold have shot up.They have very bad & expensive arrangement with WR. For part of their production they get peanuts. Some of the assets have major structural issues besides having high operating cost. They cannot go back to the market every few months to fund & fix another structural issue. They have to have cetain cash reserve cushion. I think that the management is not making proper disclosure about certain issues including some structural issues with the mines. They should announce the issues when they arise & not in their quarterly reports.
These days U & Gold stock are in high demand, At these present prices levels FIU should not have a problem in raising more money because they have huge U & gold reserves. Hopefully they would start producing U by march. Their U cost of around $52 is very high but fortunately the price of U has just shot up again & is over $72. If they complete their expansion project on time in May then this stock will run hard.
First Uranium files preliminary prospectus
Ticker Symbol: C:FIU
First Uranium files preliminary prospectus
First Uranium Corp (C:FU)
Shares Issued 181,184,686
Last Close 2/2/2011 $1.06
Thursday February 03 2011 - News Release
Mr. Julian Gwillim reports
FIRST URANIUM CORPORATION ANNOUNCES FILING OF PRELIMINARY SHORT FORM PROSPECTUS
First Uranium Corp. has filed a preliminary short form prospectus in connection with a best efforts offering of common shares. The offering is being made through a syndicate of agents led by RBC Capital Markets and including Raymond James Ltd., BMO Capital Markets, Macquarie Capital Markets Canada Ltd. and Paradigm Capital Inc. The company has granted the agents an overallotment option to purchase additional common shares under the offering, exercisable by the agents in whole or in part for a period of 30 days from the closing date of the offering.
The company intends to use the net proceeds from the offering to provide working capital at the Ezulwini mine, for capital expenditures and rehabilitation work for the Mine Waste Solutions project and for general corporate purposes.
Final pricing and determination of the number of common shares to be sold pursuant to the offering will be determined in the context of the market prior to the filing of the final short form prospectus in respect of the offering. The common shares will be offered in all provinces of Canada except Quebec by way of a short form prospectus and such other jurisdictions outside of Canada pursuant to applicable private placement exemptions.
Closing of the offering is subject to certain conditions including, but not limited to, the execution of a definitive agency agreement with the agents and the receipt of conditional listing approval for the common shares to be sold under the offering by the Toronto Stock Exchange.
We seek Safe Harbor.
2011 Canjex Publishing Ltd.