Johannesburg — Uranium One said on Monday it would buy ARMZ's 50% stake in Karatau in a deal worth 385m.
Uranium One would issue ARMZ 117-million of its shares and pay 90m in cash for the stake, plus another 60m over three years to 2012.
The two entities have also signed a long-term offtake agreement enabling ARMZ to buy annually 50% of Karatau's production or 20% of Uranium One's marketable uranium, whichever is greater.
CEO Jean Nortier said that after this deal and the conclusion of its recent agreement with a Japanese consortium, Uranium One would have formed relationships with the governments of Russia, Japan and Kazakhstan, "some of the most influential customers and suppliers in the global nuclear industry".
ARMZ director-general Vadim Zhivov said the transaction would increase ARMZ's access to uranium reserves and resources, diversify its ownership in producing assets and increase ARMZ's ability to supply uranium to Russia.
Uranium One stock plummeted this month, and trade in the counter was halted temporarily in Toronto after reports that it was one of the groups Kazakh authorities were probing after the head of Kazakhstan's state-owned uranium company, Katamprom, was arrested for allegedly stealing state assets. Last week, Kazakhstan said it would enforce agreements with foreign companies.
Uranium One's share price, which almost halved to R13 in several days of investor uncertainty last month, has since recovered some of the lost ground, and it was R21 at close of trade on Monday.
