Russia to purchase Canada's Uranium One for $610 Million

Uranium Holding ARMZ, a unit of Russia's state-owned nuclear company, decided to purchase a controlling stake in Uranium One Inc. in exchange for $610 million in cash plus holdings in two mines.Uranium One, based in Toronto, will gain 50 percent of the Akbastau mine and 49.67 percent of Zarechnoye, both in southern Kazakhstan, the company said today in a statement.

The agreement with ARMZ, a unit of Russia's Rosatom Corp., will enlarge the Kazakh production of Uranium One, which has asset in the nation as well as in the U.S. and Australia, by about 60 percent."We will use Uranium One as a platform for growth," Rosatom Chief Executive Officer Sergei Kiriyenko said in Moscow, without give a value for the stakes in the two mines. ARMZ will hold at least 51 percent of Uranium One, according to the statement.

Under the plan, Uranium One would become the first North American mine operator restricted by a Russian state company, according to Troika Dialog. Rosatom is seek more sources of uranium to feed orders for its reactor abroad. The company last month said it's ready to invest $1 billion to develop deposits in Namibia, the fourth-largest producer of the raw material.