9 Nov 2021 18:57

Rosatom entity selling American uranium asset for $130 mln

MOSCOW. Nov 9 (Interfax) - An entity controlled by the Rosatom state corporation is selling a uranium asset based in the United States, which includes an operating deposit in Wyoming.

Uranium Energy Corp (UEC) said Tuesday that it has agreed with Uranium One Investments Inc, a subsidiary of Uranium One Inc. (a Rosatom entity) to acquire all of the issued and outstanding shares of Uranium One Americas (U1A) for $112 million in cash and $19 million in debt repayments.

According to UEC, through this acquisition it will create the largest uranium mining company in America.

Rosatom said the sale was in keeping with Uranium One's strategy to optimize its portfolio of uranium mining assets to make it more cost effective.

U1A's assets are in Wyoming and include seven uranium projects in the Powder River Basin and five in the Great Divide Basin.

Closure of the deal is subject to receipt of all regulatory approvals.

Uranium One Inc. is one of the largest uranium miners in the world. In Kazakhstan, the company owns 70% of the Betpak Dala joint venture operating the Akdala and South Inkai projects, 50% of Karatau and Akbastau, 30% of the Kyzylkum joint venture operating the Kharasan project and 49.67% of the Zarechnoye joint venture developing the Zarechnoye and South Zarechnoye fields. In the United States, U1 owns 100% of the Willow Creek project, mothballed since July 2018 and the Powder River Basin and Great Divide Basin projects. It is also operator of Mantra Resources, which owns the Mkuju River mine in Tanzania.

Uranium One Inc.'s principal shareholders are Uranium One Holding N.V. and JSC Uranium One Group, which are part of the Uranium One division of Russian state nuclear corporation Rosatom.