JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed First Uranium cautioned shareholders on Friday that despite having had a key environmental approval for its Mine Waste Solutions (MWS) operation, in South Africa, reinstated, no assurances could be provided that the company would be successful in concluding an acceptable financing transaction.

This came after the company’s share price jumped by nearly 35% on the TSX on Thursday, following an announcement that the environmental authorisation (EA) for a new tailings storage facility (TSF) at MWS had been reinstated.

First Uranium’s share price also shot up by more than 55% on the JSE on Friday morning.

In February, First Uranium decided to delay future development expenditure at MWS after the North West Department of Agriculture, Conservation, Environment and Rural Development withdrew the EA.

This had disrupted the uranium-miner’s advanced financing options, which had resulted it in requiring additional funding of between $50-million and $100-million.

The company reiterated on Friday that, despite the EA having been reinstated, its financial position had been “severely impacted” on by the fact that its financing plans had been disrupted.

While a special committee was continuing to assess strategic alternatives to obtain the required funding and despite the committee holding negotiations with a number of potential investors, which had been invited to submit investment proposals, none of these proposals received so far were “acceptable”, it highlighted in a statement.

Negotiations would continue.

The uranium-miner had initially expected the EA matter to take up to a year to resolve.

However, on Thursday, it reported that it could now immediately start preparing for construction of the TSF, as soon as the necessary funding was in place.

Despite the cautionary announcement, First Uranium’s share price on the JSE still traded 33,11% higher at R11,98 a share at 11:23 on Friday, compared with Thursday’s close of R9 a share.

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