30 Aug 2010 16:15

Kazakh ministry approves ARMZ-U1 deal

VANCOUVER. Aug 30 (Interfax) - Kazakhstan's Industry and New Technologies Ministry has cleared Canada's Uranium One (U1) to acquire stakes in Kazakhstan-based uranium mines Akbastau and Zarechnoye from Russia's Atomredmetzoloto (ARMZ), U1 said in a statement.

ARMZ will swap these assets for shares in the Canadian company and receive a controlling stake in U1. The deal is also subject to regulatory approvals by other countries, including Australia and the United States.

ARMZ currently owns 23.1% of U1. U1 shareholders will vote on the takeover at an EGM on August 31.

ARMZ said in June 2010 that it had agreed a takeover of Uranium One. ARMZ will subscribe to $610 million in new U1 shares and contribute 50% of the Kazakhstan-based mining joint venture Akbastau and 49.7% of the Zarechnoye joint venture. ARMZ will receive at least 51% of U1 as a result.

Uranium One already owns 70% of the Akdala and South Inkai projects, 50% of Karatau and 30% of Kharasan-1, all in Kazakhstan; and assets in the United States, South Africa and Australia.