First Uranium subsidiary advises of purported withdrawal of MWS mining right
TORONTO AND JOHANNESBURG, Sept. 16, 2011 /PRNewswire/ – First Uranium
Corporation (TSX:FIU), (JSE:FUM) (ISIN:CA33744R1029) (“First Uranium”
or “the Company”) today announced that it has received a letter from
the South African Minister of Mineral Resources purporting to
“withdraw” the new order mining right to Mine Waste Solutions (“MWS”),
in terms of Section 23 of the Mineral and Petroleum Resources
Development Act 28 of 2002 (“the MPRDA”).
We have been consistently advised by our South African Counsel and
maintain the opinion that under current South African mining
legislation, reclamation activities such as MWS are not classified as a
mining project and therefore do not require a mining right.
The MPRDA does not make provision for the “withdrawal” of a mining
right. The MPRDA does make provision for the authorities to take other
actions in relation to mining rights provided due process is followed.
This includes the serving of notice of the intended action and provides
for an opportunity for the recipient to respond, none of which took
place in this instance.
The notice received is fatally defective and correspondence to this
effect has been sent to the Minister. The Minister has therefore been
requested to withdraw the letter.
The Company awaits the Minister’s response. Depending on the Minister’s
response, shareholders are advised that legal action may be required in
order to protect MWS’ rights.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on the
development and operation of gold and uranium projects in South
Africa. The Company’s goal is to become a significant low-cost
producer of gold and uranium from its Ezulwini underground mine (the
“Ezulwini Mine”) and the Mine Waste Solutions tailings recovery
facility (“MWS”). To expand its production profile, First Uranium has
expanded the capacity of MWS and it is ramping up production at the
Ezulwini Mine and plans to pursue other value-enhancing opportunities
in South Africa.
Cautionary Language Regarding Forward-Looking Information
This news release contains and refers to forward-looking information
based on current expectations. All other statements other than
statements of historical fact included in this release are
forward-looking statements (or forward-looking information). The
Company’s plans involve various estimates and assumptions and its
business and operations are subject to various risks and uncertainties.
For more details on these estimates, assumptions, risks and
uncertainties, see the Company’s most recent Annual Information Form
and most recent Management Discussion and Analysis on file with the
Canadian provincial securities regulatory authorities on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and
there can be no assurance that such statements will prove to be
accurate, such statements are subject to significant risks and
uncertainties, and actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements
that are included herein, except in accordance with applicable
SOURCE First Uranium Corporation