First Uranium Corporation T.FIU

Excerpts from the circular

[colt451]

• These transactions provide for a comprehensive resolution for all stakeholders of the Corporation and offer the opportunity for each class of securityholders to make a recovery on their investment.  It offers the holders of the secured Notes an immediate 100% return of their invested principal, the opportunity for the holders of unsecured Debentures to recover up to 100% of their invested principal in two stages and, also in stages, an opportunity for Shareholders to make a meaningful recovery in lieu of no recovery.

I found the above and below excerpts somewhat contridictory...first, the circular says that this deal gives shareholders the opportunity to make a meaningul recovery in liu of no recovery and then the circular says later that there is a possible plan if the AngloGold deal is voted down. Which is it? On top of that, reading the above excerpt it's clear that everyone is getting their money back except shareholders...so why does management think we will vote for this? I am perfectly happy voting no, and having FIU deal with re-negotiating with the debt holders, finding other financing, or getting a better offer. Oh...and we were not told about the Janurary 2012 offer...which is illegal as far as I know because FIU is required to alert shareholders within a reasonable time -> 4 months later is not reasonable. 

 

• if the AnglGold transaction is not approved, the Corporation will be unable to retire the Notes and release the security on Ezulwini (and provided it can satisfy the Debentures by the issuance of common shares)  accordingly the sale  to Gold One could not be completed which would require the Corporation to repay the Gold One bridge loan, secure BEE accreditation (which will dilute Shareholders as discussed above), and find significant additional funding to continue to operate Mine Waste Solutions and Ezulwini.  There are no assurances that First Uranium will be successful in securing the required BEE accreditation or, given the status of its current operations, that it will be able to raise the amounts necessary to operate Ezulwini and MWS or repay the Notes on maturity or repay the Gold One bridge loan when due;

[lefmike1]

Doug I PM'd  you a while back about that,  only the Uranium plant was on C&M   basically they were getting it ready with the GoldOne stamp of approval  on our buck......................  

[dubsbs]

Have you been in hibernation. It's not shut down just down sized to a degree where as of this month can be profitable alond with MWS.tthis profit could easily pay back 10mill bride loan that we will owe gold one after deals are voted down

[dubsbs]

@dkolish  I believe that fiu management and directors know that there being watched pretty close now and that investors are on to them. One would hope they would at the very least try to run mws and ezzy as best mgr's should.

[lefmike1]

@dubsbs Surely you jest! These guys think they can operate with total impunity,  they think they can do whatever they wish.  How else can you explain the clear open robery and destruction right under our noses of our assets? People have died at certain mines, died just before financial statements are released  not once,  that is a coincidence  but twice maybe more

[dubsbs]

@lefmike     I totally agree with what you say. However, to continue with their current conduct they would be out of their minds. Deon himself admitted by may they should be turning a profit at ezzy. MWS already does turn a profit. But could be another death( maybe in the office) and have to stop production for 3-5 days again.

[colt451]

Good point lefmike, everyone definitely needs to vote AS SOON AS POSSIBLE. I have wondered for some time why management believed that there was a realistic chance for this asset sale to go through, I mean, let's look at it completely objectively: Debt holders are receiving their initial investment +interest back, AngloGold and Gold One are getting FIU assets for 50% discounts, and shareholders