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Ezulwini mine in South Africa
Ezulwini mine in South Africa

First Uranium posts quarterly loss Add to ...

First Uranium Corp. says it lost $14.4-million (U.S.) in its third quarter.

That compares to a profit of $1.3-million in the year-ago period.

The Toronto-based gold and uranium miner says in a statement released early Tuesday its losses are mostly due to corporate expenses of $8.1-million and a foreign exchange loss of $7.4-million.

First Uranium also says that global market turbulence had an impact over the company's finances.

Earlier this month, an RBC Dominion Securities analyst said First Uranium could find itself insolvent unless it gets $100-million to $150-million in new funding to cover financing plans that fell through due to the withdrawal of a key government approval.

First Uranium had said it will suspend expansion plans after South African government officials revoked an environmental authorization for its Mine Waste Solutions operation and, in the process, disrupted the company's financing plans.

The South African government didn't give First Uranium any reasons for why it withdrew the environmental authorization.

The miner hopes to solve the issue soon, but is preparing for the worst-case scenario that it could have to go through the entire process again, which could take as long as a year.

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