"On the announcement of the Transactions on March 2, 2012, the Company outlined the Pro Forma Use of Proceeds, including an approximate amount expected to be available to shareholders on closing of $36.6 million. The Pro Forma amounts were subject to change due to, among other things, currency fluctuations (conversion rates were based on the Bank of Canada noon rate as of March 1, 2012), results of operations and the repayment at closing of the Transactions of any amount drawn under the Gold One Loan.
The Company has accessed $5 million of the Gold One Loan and expects that it will have to draw on the remaining $5 million to sustain operations. As the Gold One Loan must be repaid at the closing of the Gold One Transaction, the repayment of the loan will reduce the Pro Forma Proceeds at closing by $10 million. In addition, under the terms of the Transactions, the working capital of the operations acquired must be positive, or at a minimum there must be at least sufficient cash and other current assets to fund current liabilities. If there is a further shortfall in operating performance, that may further reduce the Pro Forma Proceeds and result in material reduction in the cash available for distribution to Shareholders at the closing of the Transactions."
https://www.firsturanium.com/sjfu/action/media/downloadFile?media_fileid=1864
In liu of the recent circular NR that essentially was management's way of saying 'shareholder's better vote yes or "else"' I thought we should all remember why we are voting no. At this point, the pro forma proceeds have been reduced by 10M and are 26.6M, however, as FIU management has said, shareholders compensation may be further reduced. What are the chances it will be further reduced? Well look at the highlighted part in the above paragraph, "the working capital must be postive", meaning that we need to have cash on hand, and given that management has said that the entire credit facility will be needed just for operations, chances are FIU will need more of the pro forma proceeds. Which leaves us with something between 0.01-0.11/share, and the escrow fund, but remember the escrow fund can be depleted if AngloGold or Gold One find anything wrong with MWS or EZ, as well the escrow fund can be depleted by lawsuits against the assets. And given that the escrow fund is not big enough to handle a class action lawsuit, or even a small claim filed by AngloGold or EZ, it won't last...
Don't be fooled by the circular...all the B.S. in it about shareholder's getting nothing if we vote no...we already are getting just about nothing. And for FIU management to essentially threaten shareholder's shows me that they are getting worried...the circular said that if we vote no then shareholders would be diluted and this would leave shareholders with nothing, but guess who's the biggest shareholder? AngloGold. If what FIU management has said is true, then when the asset sale is voted down AngloGold is taking the biggest hit to their stake, I'd imagine at this point, FIU management will say whatever they need to because they know, if this asset sale is voted down, AngloGold will be extremely unhappy and someone will pay the price...bye bye Deon.
As always...VOTING NO