First Uranium authorisation reinstated for tailings facility

Production and Markets

First Uranium Corp, the South African uranium and gold producer, has had its environmental authorisation (EA) reinstated for a tailings-storage facility at its Mine Waste Solutions (MWS) project.

In January, the company announced that the EA had been withdrawn unexpectedly. At the time the company said the decision had exacerbated an existing financing problem.

In a statement, the company said “It is important to reiterate previously-disclosed information that the withdrawal of the EA impacted the company’s access to additional funding and has severely compromised the company’s financial condition”.

The company has also indicated that it could require over US$100 million in funds for various capital projects. The company adds that it has not received any proposals from potential strategic investors that are acceptable.

Gold Wheaton Gold Corp, which has rights to gold production from Mine Waste Solution’s gold production, had previously highlighted the potential for a US$42 million penalty, payable by First Uranium, if the project wasn’t at a specific level by mid-year.

“Gold Wheaton is extremely pleased that this issue has been successfully resolved. We believe that with appropriate funding, the previously planned reduction in MWS gold production can now be reversed and that the second gold plant will continue to operate at full capacity until the tailings storage facility is able to accept tailings.” said David Cohen, CEO and Chairman of Gold Wheaton.

The First Uranium share price in Canada closed 38% higher by the end of the day on Thursday. By mid-morning in Canada on Friday the share price had retreated 4.4% to C$1.73/share.