Cameco Gains Majority Ownership Of Cigar Lake
Cameco (TSX: CCO) announced on Thursday the acquisition of a further 7.875% interest in the joint venture managing the Cigar Lake mine. The acquired stake was purchased from Idemitsu Canada Resources by Cameco and Orano Canada.
Post-transaction, Cameco now owns 54.547% of the venture while Orano also increased its stake to 40.453%. The remaining 5% is still held by TEPCO Resources.
“As the world’s largest high-grade uranium mine, Cigar Lake is quite simply one of the best and most prolific uranium producing assets on the planet,” said Cameco CEO Tim Gitzel when the acquisition was first announced. “As the operator of Cigar Lake since 2002, it’s an asset we know incredibly well.”
As previously announced, Cameco’s respective share of acquired interest is valued at $107 million for 4.522%.
The firm also previously bared its plans for the mine to increase production to 40% below capacity by 2024 from 75% below capacity. This includes producing 15 million pounds annually at McArthur River/Key Lake and 13.5 million pounds annually at Cigar Lake, for a combined 33% reduction of licensed capacity.
The 2022 production outlook for the Cigar Lake mine is 15 million pounds of uranium concentrate (U3O8) on a 100% basis, making it the largest uranium producing operation in the world this year according to the firm.
Cameco last traded at $29.62 on the TSX.
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