* In talks to sell “principal assets”
* Sale proceeds to go to pay debt due this year
* Miner slashes 2012 gold, uranium output forecasts
TORONTO, Feb 15 (Reuters) – First Uranium is
in talks to sell key assets to pay down debt due later this
year, the gold and uranium miner said.
The Toronto-based company said late on Tuesday that the sale
of its “principal assets” should generate enough cash to meet
its financial obligations, including C$150 million ($150
million) in convertible debt due in June.
First Uranium owns the Ezulwini uranium mine and the Mine
Waste Solutions tailings processing facility, both in South
Africa.
The company’s shares were flat at 19 Canadian cents on the
Toronto Stock Exchange after the market open on Wednesday. First
Uranium also reported lower-than-expected third quarter earnings
and slashed its production outlook for its fiscal 2012.
At Mine Waste Solutions, the company now plans to produce
98,000 to 100,000 ounces of gold from a previous forecast of
105,000 to 115,000 ounces.
At Ezulwini, First Uranium said it would not achieve
targeted gold sales of 70,000 to 80,000 ounces, and it slashed
its uranium sales forecast to 82,000 pounds from a previous
110,000 to 130,000 pounds.
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