Independent proxy advisory firm Glass, Lewis & Co., LLC recommended today that shareholders of First Uranium Corporation (TSX:FIU), (JSE:FUM) (ISIN:CA33744R1029) vote in favour of two asset sales approved by First Uranium's board of directors.
Glass Lewis concluded in its report that "there is, on balance, sufficient cause for shareholders to support the contemplated reorganization".
Glass Lewis' advice follows a similar recommendation by Institutional Shareholder Services (ISS) released May 29, 2012.
As has been previously communicated, First Uranium's board of directors first announced on March 2, 2012 the sale, through two subsidiary holding companies, of its Mine Waste Solutions operation, and the Ezulwini mine, to AngloGold Ashanti Ltd. and Gold One International Ltd. for $335 million and $70 million respectively. Both operations are located in South Africa.
First Uranium shareholders are due to consider the proposed transactions at a special meeting on June 13, 2012.
Responding to the two independent proxy firms' reports, First Uranium's lead independent director, John Hick, said: "Gaining support from both Glass Lewis and ISS underscores the benefits of the transactions. These recommendations are clear evidence that First Uranium's board is acting in the best interest of all shareholders."
The Glass Lewis report says that "the board's process was sufficiently robust to ensure that substantially all capable and interested buyers had an opportunity to express an interest in the assets to be disposed".
Like ISS, Glass Lewis questions the feasibility of other courses of action proposed by some shareholders: "Given the uncertainties of (the gold and uranium) markets and the very limited time frame in which First Uranium must complete a strategic transaction, we do not find the potential benefits of rejecting the current reorganization in any way mitigate the overwhelming risks and costs attendant to a bankruptcy proceeding".
First Uranium's board unanimously recommends that shareholders and debtholders vote FOR the transactions.
Shareholders and debtholders are reminded to vote their proxy FOR the transactions and all related proposals before the proxy voting deadline on Monday, June 11, 2012 at 5:00 p.m. (Toronto time).
If you have any questions about the information contained in the management information circulars or require assistance with voting your securities, please contact Kingsdale Shareholder Services Inc. by telephone at 1-866-581-1571 toll-free in North America, or at 1-416-867-2272 outside of North America (collect calls accepted), or by email at contactus@kingsdaleshareholder.com.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) operates the Ezulwini Mine, an underground mining operation, and Mine Waste Solutions (MWS), a tailings recovery facility. Both operations are situated in South Africa.
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