Canada's First Uranium Corp yesterday said that it would sell two assets in South Africa for $405 million, as part of its plan to pay off debts.

Toronto-based First Uranium, a gold and uranium miner, will sell its Mine Waste Solutions, a tailings recovery project, to AngloGold Ashanti for $335 million and the Ezulwini gold mine to Gold One International for $70 million.

Sydney, Australia-based Gold One will also provide a $10 million loan facility to First Uranium.

South Africa-based AngloGold is the largest shareholder in First Uranium, with a 19.79 per cent stake.

First Uranium, which has a market capitilisation of just $50 million, requires to pay $266 million to its lenders in the next 13 months.

The company has started a restructuring process and is planning to liquidateitself in order to use the proceeds to pay its creditors and shareholders.

First Uranium said that it will use the proceeds from the sale to make initial payments totalling $167.7 million to noteholders, $147.7 million to debenture holders and $36.6 million to shareholders after deducting $23 million in operating and transaction-related costs.

It will hold another $30 million in escrow, and may pay $4.6 million to debentureholders and $25.4 million to shareholders.

Both deals will require shareholder approval as well as its lenders.