Uranium One board recommends ARMZ deal

16 July 2010

The board of Toronto- and Johannesburg-registered Uranium One has approved the agreement with Russia's AtomRedMetZoloto (ARMZ) under which ARMZ will acquire a controlling interest in Uranium One in exchange for its interests in two Kazakh in-situ leach uranium mines and $610 million in cash. Under the agreement, announced in early June, ARMZ will transfer ownership of its 50% stake in the Akbastau mine and 49.7% stake in the Zarechnoye uranium mine. In arriving at its decision, the board took into account the recommendation of a panel of independent directors formed to review the transaction. An independent financial advisor to that panel put the value of ARMZ's stakes in the Kazakh mines at between $815 million and $1 billion. The board has recommended that Uranium One shareholders vote in favour of the deal at a special meeting on 31 August. Uranium One also said that the transaction had "received all required formal corporate approvals from ARMZ." The deal - which requires Kazakh and other regulatory approvals - is expected to be finalised by the end of 2010.

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