Uranium One buys 50% of Kazakh mine for $420 million

ASTANA. December 19. KAZINFORM. Uranium One Inc., a Canadian producer of the metal, acquired 50 percent of the Karatau Uranium Mine in Kazakhstan for $420 million from JSC Atomredmetzoloto, the Russian state-owned uranium miner; the Kazakh Embassy to the USA told Kazinform referring to Bloomberg.
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At full production, Uranium One's share of output from the mine is expected to be 2.6 million pounds a year, the Toronto-based company said in a statement to Johannesburg's stock exchange today. "Karatau will reach this level during 2010."

To fund the transaction, Uranium One issued the Russian company with 117 million common shares, representing a 19.9 percent stake, and a $90 million promissory note due not later than 12 months from closing. This values the transaction at about $420 million, Uranium One spokesman Chris Sattler said in an e-mailed response to questions.

The acquisition also includes a contingent payment of $60 million to be paid over three years depending on the tax regime in Kazakhstan, according to Sattler.

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