Uranium One Announces Agreement to Acquire 50% Interest in Karatau Uranium Mine and 35% Increase in 2010 Production Guidance

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[{"type":"text","content":"\n\n\n\nTrading Symbols: UUU - Toronto Stock Exchange, JSE Limited (Johannesburg\nStock Exchange)\n\n\nVANCOUVER and JOHANNESBURG, June 15 /CNW/ - Uranium One Inc. today\nannounced the signing of a definitive purchase agreement to acquire a 50%\ninterest in the Karatau Uranium Mine in Kazakhstan from JSC Atomredmetzoloto\n("ARMZ"), the Russian state-owned uranium mining company.\n\n\nThe purchase price will be paid by way of the issuance of 117 million\ncommon shares of Uranium One and a cash payment of US$ 90 million (or\nequivalent promissory note). The purchase agreement also provides for a\ncontingent payment to ARMZ of up to US$ 60 million, payable in three equal\ntranches over the period between 2010 and 2012 subject to certain post-closing\ntax related adjustments.\n\n\nThe acquisition of a 50% interest in Karatau enhances Uranium One's\nposition as one of the world's leading uranium suppliers. Following the\nacquisition, Uranium One is expected to have:\n\n\n- attributable 2010 production guidance of 7.5 million pounds, an\n approximate 35% increase over the Company's previous 2010 production\n guidance of 5.6 million pounds\n- 2010 weighted average cash operating costs of less than US$20 per\n pound sold\n\n\nThe acquisition is also expected to be accretive to Uranium One's net\nasset value, cash flow, earnings and production per share, based on the\nCompany's internal evaluations.\n\n\nJean Nortier, President and Chief Executive Officer of Uranium One said:\n\n\n"The acquisition of a 50% stake in Karatau adds another long-life, large\nscale and high margin asset to our portfolio and will significantly enhance\nUranium One's production profile and cement its position of leadership in the\nKazakh uranium mining industry. The completion of this transaction, as well as\nour previously announced private placement with the TEPCO/Toshiba/JBIC\nconsortium, will give us long-term partnerships with the governments of\nRussia, Japan and Kazakhstan, as well as some of the most influential\ncustomers and suppliers in the global nuclear industry."\n\n\nVadim Zhivov, Director General of ARMZ commented:\n\n\n"I am delighted to announce our agreement with Uranium One to become a\nsignificant shareholder and to enter into a long-term relationship. This\ntransaction meets all the strategic objectives of ARMZ, inc...

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