Hathor urges shareholders to reject Cameco bid

Hathor Exploration (HAT.TO) urged shareholders on Wednesday to reject a conquest offer from Cameco Corp (CCO.TO), saying the C$520 million ($526 million) bid undervalues the excellence of its Roughrider uranium deposit.

Cameco launched its aggressive bid for the uranium exploration company in late August, after talks meant at a friendly deal failed [ID:nNL4E7JQ27] at stake is Hathor's Roughrider deposit, a uranium project situated near Cameco's Rabbit Lake mill in the Athabasca Basin of the Canadian province of Saskatchewan.

Hathor said Cameco's C$3.75 a share offer was financially insufficient and failed to ascribe value to Roughrider and to its other assets, as well as its Russell Lake property in the southeastern Athabasca Basin, Cameco, which is Canada's top uranium producer, argue that Hathor is underestimating the costs, timeline and risks related with building a uranium mine and mill, and as such, has overstated the worth of its projects.

Cameco stirs up interest in bombed out uranium sector

The faint stirrings of interest in the uranium sector are preliminary to be detected in the wake of the Japanese earthquake and tsunami, which set the scene for the most horrible atomic disaster since Chernobyl.

The tragic event prompted a rethink of nuclear policy worldwide, by means of Germany at the vanguard and sent the price of the fuel plummeting, bring the valuations of the companies mining uranium down with it.

Against this backdrop the world’s largest producer, Cameco Corp (TSE:CCO, NYSE:CCJ), is looking to close what seems to be a smart piece of business it have gone hostile with its US$530 million bid for Hathor Exploration (CVE:HAT), which own the Roughrider deposit in Canada’s Athabasca Basin.