First Uranium announced that it has entered into an agreement with Vulisango , a Black Economic Empowerment (BEE) company, for the provision of BEE related services.
These services include assisting the Company in complying with the Mineral and Petroleum Resources Development Act and assisting and giving guidance to the Company with regard to its policies in accordance with the Mining Charter.
Vulisango will receive a monthly fee of R400,000. The agreement has an indefinite term, but it may be terminated by agreement between the parties, on a change of control of First Uranium, or, in the event of a material breach of the agreement, by the non-defaulting party.
In addition to securing Vulisango’s services under the management agreement, the Company will continue to work with Vulisango in considering options to improve the Company’s BEE credentials subsequent to the disposal by Village Main Reef of 19.79% of its 25.5% shareholding in First Uranium to Anglo Gold Ashanti as announced in a news release on July 22, 2011.
First Uranium Corporation said it is focused on its goal of becoming a low-cost producer of gold and uranium through the expansion of the underground development to feed the new gold and uranium plants at the Ezulwini Mine and the ramp-up of production at the Mine Waste Solutions (MWS) tailings recovery facility following the completion of a significant gold capital expansion program in May 2011.