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Uranium One Receives Kazakh MEMR Approval to Acquire 50% of the Karatau Uranium Mine
Uranium One Receives Kazakh MEMR Approval to Acquire 50% of the Karatau Uranium Mine
About this update from Uranium One Mining Corp.
[{"type":"text","content":"\n\n\n\nNov. 15, 2009 (Canada NewsWire Group) -- VANCOUVER and JOHANNESBURG, South Africa, Nov. 15 /CNW/ -- Uranium One Inc. today announced that the Kazakh Ministry of Energy and Mineral Resources (\"MEMR\") has approved the Company's purchase from JSC Atomredmetzoloto (\"ARMZ\") of a 50% joint venture interest in the Karatau Uranium Mine. The approval also includes a waiver of the pre-emptive right of the Kazakh State under the Subsoil Use Law of Kazakhstan.Uranium One expects to close the acquisition on or about December 15, 2009, subject to approvals from the Kazakh Anti-Monopoly Commission and the Australian Foreign Investment Review Board, which are expected to be received in due course, and to the satisfaction of usual and customary closing conditions.As previously announced, the purchase price will be paid by way of the issuance of 117 million common shares of Uranium One and a cash payment of $90 million (or equivalent promissory note due within one year of closing). The purchase agreement also provides for a contingent payment to ARMZ of up to $60 million, payable in three equal tranches over the period between 2010 and 2012 subject to certain post-closing tax-related adjustments. A long-term offtake agreement and framework agreement previously agreed by the parties will become effective upon closing of the purchase agreement.Uranium One has appointed Vadim Zhivov, Director General of ARMZ, to its board of directors effective on closing and subject to regulatory approval.Uranium One's share of production from Karatau in 2010 is expected to be 2.3 million pounds of U(3)O(8) at an average cash cost of approximately US$14 per pound sold. At full production levels, Uranium One's share of production from Karatau is expected to be 2.6 million pounds per year. It is expected that the annualized rate of production from Karatau will reach this level during 2010.Japan Consortium Private PlacementThe Company's application to MEMR for the approval and waiver required to complete the private placement to a special purpose corporation formed by The Tokyo Electric Power Company, Toshiba Corporation and The Japan Bank for International Cooperation remains pending. As previously announced, that transaction provides for the issuance of 117 million common shares of Uranium One for gross proceeds of approximately C$270 million, as well as...