HomeEnergy MineralsUranium One buys into Kazakhstan uranium mine

Uranium One buys into Kazakhstan uranium mine

Uranium One’s South
Inkai uranium project
Johannesburg, South Africa — MININGREVIEW.COM — 17 December 2009 – Uranium One Incorporated “’ a Canadian-based uranium producing company with a primary listing on the Toronto Stock Exchange and a secondary listing on the Johannesburg Stock Exchange “’ has acquired 50% of the Karatau uranium mine in Kazakhstan for US$420 million (R3.1 billion) from Russian state-owned uranium miner JSC Atomredmetzoloto.

In a statement to the JSE issued here, the company revealed that at full production its share of output from the mine was expected to be 2.6 million pounds a year. “Karatau will reach this level during 2010,” the statement added.

Uranium One confirmed that to fund the transaction it had issued the Russian company with 117 million common shares, representing a 19.9% stake, and a US$90 million (R675 million) promissory note due not later than 12 months from closing. This placed the value of the transaction at about US$420 million (R3.1 billion), Uranium One spokesman Chris Sattler said in an e-mailed response to questions.

He added that the acquisition also included a contingent payment of US$60 million (R450 million) to be paid over three years, depending on the tax regime in Kazakhstan.