Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

South African Investor Makes Bid for First Uranium Stake

South African investor Mandla “Bear” Kumalo said he offered to buy a stake of 26 percent in Canada’s First Uranium Corp. in an effort to block the sale of a mine to Australia’s Gold One International Ltd.

Kumvest (Pty) Ltd., Kumalo’s wholly owned investment company, would acquire new shares of First Uranium for 37 Canadian cents apiece, he said today in a telephone interview from Johannesburg. The offer is more than double First Uranium’s closing share price in Toronto yesterday.

First Uranium said in a statement that the bid is “highly conditional” and doesn’t include any evidence of financing. Its shares rose 27 percent to 19 cents in Toronto, giving the company a market capitalization of C$45.2 million.

First Uranium has plunged 98 percent in the past five years after uranium prices dropped and its South African operations faced delays. The Toronto-based company is selling assets for $405 million to help pay off debt, including about C$150 million ($146 million) due June 30.

Kumalo said the transaction is conditional on the company appointing a new chief executive officer, financial director and chief operations officer. He’s also seeking the new management be given 90 days to present a turnaround plan.

AngloGold Deal

Kumalo said he wants to stop First Uranium’s agreed sale of its Ezulwini gold and uranium mine to Gold One for $70 million. The company is also selling its Mine Waste Solutions unit to Johannesburg-based AngloGold Ashanti Ltd. for $335 million.

“Management has done a bad job,” Kumalo said. “The board doesn’t have to sell all the assets.”

First Uranium has scheduled a June 13 shareholder vote on the asset sales.

The Kumvest deal would also enable First Uranium to satisfy South Africa’s black empowerment regulations that compels all mine operators in the country to sell 26 percent of their assets to black investors.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.