First Uranium warns finances may have been compromised Eric Lam, Financial Post February 02, 2010 – “…….the unexpected loss of an environmental permit last month, while warning the delays have compromised the company’s finances.
The environmental authorization was for a new tailings storage facility, part of an existing tailings recovery project in the North West province of South Africa………….
Toronto-based First Uranium warned that construction delays as a result of this setback have “disrupted” financing opportunities which, if not obtained, would “severely compromise the company’s financial position.”………
First Uranium is also scaling back production from its tailings recovery project in March, to maximize its tailings capacity. The move will result in lower revenues and increase financing needs, the company warned.
The Department of Agriculture, Conservation, Environment and Rural Development, a provincial ministry, withdrew First Uranium’s environmental authorization to build a tailings storage facility in late January. The facility is supposed to be part of a larger tailings recovery project.
Tailings are waste by-products produced while refining ore. As the process produces a slurry of fine mineral particles suspended in water, tailings present a serious environmental issue for many mining operations.
First Uranium warns finances may have been compromised
