Russian state-owned miner Atomredmetzoloto (ARMZ), a subsidiary of Rosatom, has bought a controlling stake in Canada's Uranium One using its stakes in two Kazakh uranium mines as a part of the payment, the head of Rosatom said on Tuesday.
"We have received the approval from the Kazakh government [for the transfer of Kazakh uranium mines' stakes to Uranium One], that is why, using this opportunity, I would like to thank Kazakh Prime Minister Karim Masimov and the Kazakh government," Sergei Kiriyenko said, adding that the Uranium One asset swap deal was "an important strategic event" for Russia.
The mining arm of Rosatom will increase its ownership in the Canadian company to 51% from 23%. The deal envisions that Vancouver-based Uranium One will issue 356 million common shares.
ARMZ will pay Uranium One $610 million in cash. It will also give the company shares in two uranium mines in Kazakhstan: a 50% stake in the Akbastau mine and 49.7% stock in the Zarechnoye mine.