Uranium One sells stake in Paladin

PERTH – Australian uranium-miner Paladin Energy yesterday welcomed the decision by TSX- and JSE-listed Uranium One to dispose of its interest in Paladin, owner of Langer Heinrich.

Uranium One announced on Tuesday it has sold all the shares it bought in rival Paladin, with CEO Jean Nortier saying the primary reason for the sale was to strengthen the company’s balance sheet ahead of the minority shareholder dividend payment.Paladin said that with Uranium One divesting its share in the company, it left Paladin as the only fully independent, publicly listed pure play uranium producer in the world.’With its clear strategy and proven ability for growth, Paladin remains ideally positioned to enhance its position as a major player in the global uranium supply sector,’ Managing Director John Borshoff said.Meanwhile, Uranium Holding ARMZ, a unit of Russia’s state-owned nuclear company Rosatom, agreed to purchase a controlling stake in Uranium One in exchange for US$610 million in cash and interests in two mines, Bloomberg reported yesterday.ARMZ will acquire 356 million new shares of Uranium One to raise its holding to at least 51 per cent from 23 per cent, Uranium One said.Rosatom is seeking more sources of uranium to supply nuclear reactors it is building outside the country. The company said last month it’s ready to invest US$1 billion in deposits in Namibia, the fourth-biggest producer of uranium.’We’ll use Uranium One as a platform for growth,’ Rosatom Chief Executive Officer Sergei Kiriyenko said in Moscow. – miningweekly.com-Bloomberg