Cameco Corp. and Orano Canada Inc. have agreed to buy out a Japanese energy company's last five per cent stake in a uranium mine in northern Saskatchewan, further consolidating their control over the asset.
Full Ownership of Cigar Lake
The deal would make Saskatoon-based uranium giant Cameco and French mining multinational subsidiary Orano jointly own the entirety of the Cigar Lake mine. Cameco will pay Tokyo Electric Power Company's Canadian subsidiary, TEPCO Resources Inc., approximately $115.75 million for its stake, increasing Cameco's share by nearly three per cent to more than 57 per cent. Orano, which did not disclose the dollar value of its purchase, would raise its ownership to nearly 43 per cent.
Industry Significance
"Scarce licensed (and) permitted assets like Cigar Lake are playing an essential role in fueling global ambitions to expand nuclear energy generation," said Cameco's chief executive Tim Gitzel in a statement. The mine is one of the world's largest and highest-grade uranium operations.
Production and Expansion
The acquisition is expected to close in the third quarter of this year. Cameco, which operates the mine, expects to produce between 17.5 million and 18 million pounds of uranium concentrate at Cigar Lake in 2026. The company is also working to extend the mine's life until 2036.
Orano also holds significant stakes in other Saskatchewan uranium assets: 30.2 per cent in McArthur River, 16.7 per cent in Key Lake, and it operates and jointly owns McClean Lake. Cameco's stock rose seven per cent to $166.92 per share in early trading on Tuesday following the announcement.
