First Uranium Corporation T.FIU

New management

[uranicynic]

Surely AngloGold has some bright young managers that would love to have the opportunity to turn around First Uranium. As a major shareholder AGA would be well within their rights to insist on a management change and also to supply the new team.

AGA probably has their hands full right now on other more pressing matters. Kinross looks like easy pickings for one of the gold majors in the next 6-12 months.

[hyperlite]

sorry to get off topic but kinross is not getting bought by anyone after they came out two weeks ago and said Tasiast was a total bag of shit. no one is paying for that until it gets sorted out which wont be for at least a year or two.   that being said i agree with your thoughts on Ashanti. I dont think they have the ability to replace the mgmt team on a whim... but certainly they can bring

[colt451]

It probaly just comes down to coming to a price - Ashanti would want what, lets say between 0.50-0.70, but shareholders are going to want anything from 0.80-1.00+. I think that's the problem, simple as that, Ashanti may be hoping FIU runs out of money so they have to go to them instead of the other way around.?

[uranicynic]

It's a good opportunity to install some managers to see how they do. If they're totally successful it will cost AGA more to buy the company but they'll be getting a much better company and potentially a future CEO of AGA. If they can't do much with FIU, AGA can take the company over cheaply and get rid fo their failed experiment at the same time.  

[hyperlite]

yea youre completely right on that. but, the simple truth of the matter is that FIU has no way to raise 100MM to pay off the debentures, regardless of the production numbers this year they just dont have the cash... whos gonna loan them the money? MAYBE they can call a meeting and extend the debentures... but if thats the plan they need to call a meeting ASAP cuz it takes time and if the debt

[hyperlite]

uranicynic, the only problem with that is what about the debentures? a management change alone doesnt solve the problem that they need a huge influx of cash in the next 6 months.

[lefmike1]

I can and maybe I AM  totally wrong  but I disagree on the cash situation, let's try to look at this another way. 1)   If FIU let's the debentures go to maturity, what happens?  I think  they would be forced to either convert those debentures to shares  at the going price.....  Would the debenture holder want that?  I doubt it very much because

[uranicynic]

or they need to get the debenture holders to agree to extend for another two years at a higher percentage. This is a lot easier to negotiate after a good quarter.

[lefmike1]

One thing that I did forget to mention, If I'm not mistaken,  the debenture holders do not have a choice regarding the conversion or payout..  It's an either or thing at FIU's discretion.  So FIU would be able to say,  Debenture guys, this is the deal.. you extend us at whatever interest rate,  or we convert you to shares.....  I firmly believe that the

[shiftman]

Unsecured debentures.

[hyperlite]

great reply, thanks mike. so youre right when the debentures come due they can be paid in either cash or shares based on managements decision. no vote is needed by the debentureholders or shareholders under this senario becasue its already built into the original debenture agreement. so heres how the math plays out...   Curent Price       &

[hyperlite]

lol im not sure why this guy just wrote "unsecured debentures"... i hope he isnt implying that he thinks the company doesnt have to pay them becasue they are unsecured...

[lefmike1]

My feeling is, is that it's the shareholders AND debenture holders best interest to extend the maturity date.  Yes the debenture holders end up owning more shares but the question is  do they want to go that route?  I'm not at all sure where you can get 7.0 or even 4.5 % interest on an investment.  I would seriously think of just keeping the debentures where they

[hyperlite]

okay im not sure where to begin...   okay here we go... obviously its in the shareholders best interest to extend but as a debenture holder why would i want to get paid later when i can get paid today? furthermore if i extend then my debentures are going to come due around the same time as the notes... which means i probably have to agree to ANOTHER extension... why would I agree to that when

[prouditalian]

hyper,I mentioned this privately to you yesterday. Your notes are unsecured so in bankruptcy, you make get nothing. And if you do take shares at market price, those shares will drop on the next day of trading massively. The only hope here is a buyout, and it wont be at a price most will like. The one certainty is this team needs to be replaced soon.

[hyperlite]

'unsecured' just means they are not tied to a specific asset. you still get paid before the shareholders. the only guys ahead of me in line are the note holders who own about 100MM (if i remember correctly)... clearly the assets are worth more than that so i have no doubt id get paid.

[chillyballs]

So why would I extend....   well, if you don't I have no doubt you will be paid in shares at ..say....23 by todays price.... the onslaught of shares into the market will drive the share price to maybe .01 cents and you  get phucked like the rest of us... don't fall off your high horse!!!

[hyperlite]

well the way around that is to simply take a short position = to the number of shares i am going to be issued and then cover my position with the shares i am issued instead of selling in the open market... problem solved. the point is, no chance that ashanti lets that happen they either write a cheque or buy out the remaining holders prior to June Can I get back on my horse now?

[prouditalian]

hyper, lots of bitter losers. Dont take them seriously. You likely have a very good trade going.

[chillyballs]

I hope you are as fast at trading as you are arrogant! You will hear about debentures at the same time as the rest of the market,  the market will crash immediately and your opportunity to take a short position is almost non existant. So whatever... I agree no one wants it to happen and for god sakes shake the horse crap off your chaps as you remount your steed. I hear it is some sort of

[chillyballs]

Proud...of all the whores Hyperliteheaded would hitch his wagon to he would pick you....misguided soul.... sorry I actually meant to say Horses but my back space key won't work....

[hyperlite]

i dont think you get it... i dont really want to give you a free education but I guess i will...   so the value of the company doesnt change by converting debt to equity... all youre doing is re arranging the EV calculation... the total value is the same (EV = marketcap + debt - cash). now there is something to be said for supply and demand which you originally pointed out... if you have mass

[chillyballs]

Hyper.... I always appreciate humour, that is why I read Prouds posts.... as far as the free education...always appreciated albeit fairly rudimentery and redundant. there is no need to even consider a revised EV equation. I am not refering to mass selling.... it is simply a case of supply and demand... a buzillion shares would be printed and thus in circulation and there would be absolutely zero

[hyperlite]

how do you figure zero demand? the asset has value, at some price there will be buyers... I thought this was fairly straight forward so i didnt go into detail on it... if you were REALLY concerned about the number of shares out i guess you could do a reverse stock split but it really doesnt matter... the physical number of shares doesnt mean sh!t. By converting the debt into equity all youre doing

[chillyballs]

At the risk of belabouring this topic all to hell..... YES... there will be demand...NO it won't be at the price you get your debentures converted at ...it will be at pennies... NO there are no institutions out there that would touch this baby as they all have restrictions on how much a stock must be worth before they can add to their potfolios...those that don't are vultures and will give

[hyperlite]

you have no idea what youre talking about...   but thats fine with me, i just came on here to see what everyone else thought would happen and it seems like everyone whos an equity holder in here thinks the solution is for the debt holders to extend for them :) typical   so ive got what i came for, and I wont be posting anymore... but anyone who wants to have a real conversation please

[prouditalian]

https://www.miningmx.com/opinion/columnists/First-Uranium-still-teeters-on-the-brink.htm good article. I believe the company will survive and will be bought out by Anglo, but have lowered my price to .30-.40. You cannot believe 1 word that the CEO says anymore as they have missed all guidance and revised guidance for I dont how many consecutive quarters. I am sure that Sprott and other