WMC, which also includes Russia’s Renova Group, stated it is in the final stages of raising the required funds to table a substantial offer to FIU shareholders to take over indebted First Uranium in full.
Waterpan Mining said it is aware that a significant number of the minorities are dissatisfied with the offer and will vote against the offer, with one of the minorities pledging its support to WMC management should WMC table an offer to acquire FIU.
"The support is on the back of the depth of experience in the WMC management team and confidence in the teams to turnaround FIU," the company added.
The funds being raised, and if successfully concluded will also allow WMC to service the FIU debts being the convertible debentures due on 30 June 2010, the Gold One International bridging loan and the Canadian and ZAR notes due in March 2012.
The news comes after First Uranium, which operates Ezulwini Gold Mine, an underground mining operation, and Mine Waste Solutions (MWS), a tailings recovery facility, is in an advanced process to shed off both its assets.
China’s Gold One made an offer to acquire Ezulwini for C$70m ($67m) and Anglo Gold Ashanti to acquire Mine Waste Solutions for C$335m ($323m) to enable FIU to pay debt of about C$330 ($318m).
FIU board has agreed to go ahead with both offers, after shareholder approval, scheduled on 13 June 2012.
