Uranium One to Buy into Kazakh Mines

14 June 2010 (Last Updated June 14th, 2010 18:30)

Uranium One has signed a definitive purchase and subscription agreement with Atomredmetzoloto to buy its 50% stake in the Akbastau uranium mine and its 49.67% stake in the Zarechnoye uranium mine, both located in southern Kazakhstan. The acquisition will increase Uranium One's state produ

Uranium One has signed a definitive purchase and subscription agreement with Atomredmetzoloto to buy its 50% stake in the Akbastau uranium mine and its 49.67% stake in the Zarechnoye uranium mine, both located in southern Kazakhstan.

The acquisition will increase Uranium One's state production from its Kazakhstan assets by approximately 60%, from ten million pounds to around 16 million pounds.

Total cash costs per pound sold are expected to remain less than $20 per pound on a consolidated basis.

Uranium One said it expects to realise management and operating synergies upon integration of these assets, especially at Akbastau, which is contiguous to the company's Karatau uranium mine.