FP says First Uranium tumbles on South African letFIU made the Canadian news paper. The company did not mentioned of any stoppage of work therefore I am assuming that the production continues at MWS after the withdrawal of so called rights to mine when there are cleaning up the tailing ponds & improving the environment. This issue will get resolved eventually.
Now the risk to the company is that the market cap of the company is only $70 million. It has $27 million in Cash has $840 million of property plant & equipment. Just the break up valve is around a billion dollars & the market is pricing it at just $70 m. Some one might take a short at the company & buy it cheap at these depressed prices. The company should have some kind of poison pill to protect the existing shareholders. At his time every single shareholder is taking a huge loss even the recent buyer Anglo has a book loss of 50 % . The participants of last financing of $50 millon have lost 70 %. Large shareholders should force some changes to the management. It needs to be reinforced.
FP says First Uranium tumbles on South African letter
First Uranium Corp (C:FIU)
Shares Issued 237,875,299
Last Close 9/16/2011
.295
Monday September 19 2011 - In the News
The Financial Post reports in its Saturday edition that First Uranium plunged 5.5 cents to close at 29.5 cents Friday after it warned it may have to take legal action against the South African government over the right to operate a mine waste project. A Canadian Press dispatch to the Post reports that First Quantum received a letter from South Africa's Ministry of Mineral Resources informing it that its rights to Mine Waste Solutions tailing recovery operation has been withdrawn. "The notice received is fatally defective and correspondence to this effect has been sent to the minister. The minister has therefore been requested to withdraw the letter," said First Uranium. "The company awaits the minister's response. Depending on the minister's response, shareholders are advised that legal action may be required in order to protect MWS' rights." First Uranium said its lawyers in South Africa have consistently said reclamation activities such as MWS are not classified as a mining project, and as such do not require a mining right. It said South African legislation does not make provision for the "withdrawal" of a mining right, but does allow authorities to take other action, provided due process is followed.