16 Dec (NucNet): Russia’s state-owned nuclear energy corporation Rosatom has agreed to buy Australia-based uranium company Mantra Resources for 1.2 billion Australian dollars (AUD) (1.1 billion US dollars, 896 million euro).
Rosatom, which is executing the deal through its subsidiary ARMZ Uranium Holding, said Mantra’s core asset is the world-class Mkuju River uranium project in Tanzania. A feasibility study on the project is nearing completion.
According to the agreement, which is subject to Australian regulatory approval, each common share of Mantra will be exchanged for a cash payment of AUD 8.00.
ARMZ director-general Vadim Zhivov the acquisition of Mantra is consistent with ARMZ’s strategy of acquiring low cost, long life, geographically diverse assets.
Mantra said its major shareholder, Highland Park, will vote in favour of the deal and that its directors will recommend the bid. ARMZ and Canada's Uranium One also have entered into a definitive put/call option agreement under which Uranium One has the right to acquire from ARMZ, and ARMZ has the right to sell to Uranium One, all of the Mantra shares.
ARMZ’s acquisition of a controlling stake in Uranium One is scheduled for completion by the end of the year. ARMZ, is paying 610 million US dollars (482 million euro) to raise its interest in Uranium One from 17 percent to 51 percent.
>>Related reports in the NucNet database (available to subscribers)
Rosatom Aiming For ‘Global Diversification,’ Says Kiriyenko (News In Brief No. 149, 25 August 2010)
Russia And Mongolia Agree Conditions For Uranium Joint Venture (News in Brief No. 119, 15 December 2010)
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