Simmer & Jack Mines, Limited completed a secondary offering on March 9, 2009 of 19,600,000 common shares of First Uranium Corporation at a price of $4.60 per common share for gross proceeds of $90,160,000 to Simmers.
First Uranium did not receive any of the proceeds of the secondary offering. The secondary offering was made through a syndicate of underwriters led by RBC Capital Markets and including Scotia Capital Inc., National Bank Financial Inc., Macquarie Capital Markets Canada Ltd. and Raymond James Ltd.
Simmers has granted to the underwriters an over-allotment option, exercisable for a period of 30 days from the closing of the secondary offering to purchase an additional 2,940,000 common shares of First Uranium on the same terms as the secondary offering. Simmers intends to use the net proceeds from the secondary offering to fund, in part, the acquisition of the Tau Lekoa Mine from AngloGold Ashanti Limited.
Fasken Martineau DuMoulin LLP acted as Canadian counsel to Simmers and First Uranium with a team that included Robert Mason and Amanda Fullerton (corporate and securities) and Mitchell Thaw (tax). Warren Drue and Maryann Middleton of Routledge Modise acted as South African counsel to Simmers and First Uranium. Christopher Barry and Shona Smith of Dorsey & Whitney LLP acted as United States counsel to Simmers and First Uranium. First Uranium also received legal advice from Mary Batoff, vice president, legal and secretary.
Stikeman Elliott LLP represented the underwriters with a team that included Derek Linfield, Peter Laflamme and Kevin Smyth (corporate and securities). Manus Booysen and Rita Classen of Webber Wentzel acted as South African counsel to the underwriters.