Areva of France has successfully completed its takeover of South African uranium exploration company UraMin. The company now holds some 93% of UraMin's share capital.
Areva launched a friendly takeover bid for UraMin on 25 June, offering more than $2.5 billion in cash for 100% of UraMin's share capital. The cash offer bid, made through Areva's indirect wholly-owned subsidiary CFMM Developpement, was based on a price of $7.75 per UraMin share. Areva and UraMin entered into a support agreement in respect of Areva's takeover offer.
As a result of the successful takeover, UraMin will be de-listed from the Toronto stock exchange.
Areva says it intends to integrate UraMin as quickly as possible in order to optimise synergies with its existing mining activities and allow the company to develop its full potential.
UraMin is currently focusing on the development of its advanced stage exploration projects at Trekkopje in Namibia, Bakouma in the Central African Republic and Ryst Kuil in South Africa. The company also has a number of exploration projects in both Africa (Chad, Niger, Senegal, Mozambique and Bakouma) and joint venture projects in Canada (the Rea Project within the Athabasca Basin in Alberta and the Labrador Project in Quebec).
The deposits identified by UraMin in South Africa, Namibia and the Central African Republic should result in an annual production of more than 7000 tonnes of uranium after 2012, according to Areva. "The commissioning of these projects will also enable Areva to further diversify its production resources to secure its customers' uranium supplies over the long-term," the company said.
WNA's Uranium in Africa information paper
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