Uranium One (TSE:UUU) has big news
Today's Financial News - Posted June 15, 2009
Uranium One (TSE:UUU, PINK:SXRZF) announced a major acquisition in Kazahstan today. What to do about it…
by J. Christoph Amberger
Baltimore—TFN: Bloomberg reported that Russia’s nuclear energy holding Rosatom Corp. has agreed to acquire a 17% stake in Canadian mining company Uranium One, Inc. (TSE:UUU) in exchange for half of the Karatau uranium deposit in Kazakhstan.
(Uranium One, through various joint ventures, already owns a 30% interest in the Kharasan Project in Kazakhstan.)
Apparently, they were under-informed: Uranium One Inc. announced that they’ve signed a definitive purchase agreement to acquire a 50% interest in the Karatau Uranium Mine in Kazakhstan from the Russian state-owned uranium mining company.
The purchase price will be paid by issuing 117 million common shares of Uranium One and a cash payment of US$90 million.
The stock rose 5.6% on Friday, closing at C$2.83.
There could be another short-term blip in UUU today. The purchase makes Uranium One one of the biggest uranium players in the world. Given Chinese interest in Kazakh natural resources, this could also turn out to be a good long-term play, with an upside of maybe 50% over the next 18 months.
I say buy a speculative position in the stock below C$3. Remember, it’s trading in Toronto. There is an ADR available, Uranium One (PINK:SXRZF), corrected down for the exchange rate to $2.51. We prefer to deal with the original stock whenever possible… so we’ll be entering TSE:UUU into our tracking portfolio at the open today.
Next Article: Move up the stop-loss on TRGL to 80%!
Posted by J. Christoph Amberger · Filed Under Editor's Pic, Gold and Resources
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