Ezulwini mine in South Africa
First Uranium Corp. shares soared more than 50 per cent Friday after the company announced that African mining giant AngloGold Ashanti Ltd. has agreed to buy nearly 20 per cent of the TSX-listed South African miner for $28.2-million First Uranium shares gained 19.5 cents to close at 58 cents in trading on the Toronto Stock Exchange.
AngloGold will buy some 47 million shares from Village Main Reef Ltd. for 60 cents per share.
Village also granted to AngloGold rights of first refusal for its remaining 5.7 per cent equity stake in First Uranium and about $55-million principal amount of secured convertible notes issued by subsidiary Mine Waste Solutions Ltd.
First Uranium said a special committee formed July 12 when Village announced its exit strategy will now consider the effect of the transaction on the company and review regulatory considerations.
Headquartered in Toronto, First Uranium is focused on developing gold and uranium projects in South Africa, where it has the Ezulwini underground mine.