Russia’s ARMZ gains control of Canada’s Uranium One, Industrial Fuels and Power, 9 June 2010, Russia’s ARMZ has agreed to acquire a controlling stake in Canada’s Uranium One Inc by buying 356m new shares, effectively raising is current 23 per cent holding to at least 51 per cent. ARMZ will pay the Toronto-based company US$610m cash as well as interests in two Kazakh mines. Uranium One will gain 50 per cent of the Akbastau mine and 49.7 per cent of Zarechnoye in the south of the country.
The acquisition is part of the expansion plans of Rosatom Corp, ARMZ’s parent company and represents the first North American uranium venture for the firm. Russia’s state-owned nuclear company is seeking more uranium sources to supply the nuclear reactors its is building outside Russia. Last month, it revealed plans to invest US$1bn in Namibian uranium deposits. “We’ll use Uranium One as a platform for growth,” Rosatom CEO Sergei Kiriyenko said.