Cameco buys Areva’s uranium Millenium Project for $150 million

Cameco Corp. (TSX: CCO; NYSE: CCJ), Canada’s largest uranium company, said it agreed to buy Areva Resources Canada’s 27.94% stake in the northern Saskatchewan-based Millennium project for $150 million. With this acquisition Cameco becomes the majority holder in the proposed uranium mine.

The Millennium project is located in the Athabasca Basin of northern Saskatchewan, Canada. The project area is one of 12 mineral claims held by the Cree Lake Extension Joint Venture exploration project, which is currently owned by Cameco, 41.96%, JCU (Canada) Exploration Company Ltd., 30.1%, and AREVA Resources Canada Inc., 27.94%. Cameco is the operator.

Under the agreement, the Millennium mineral claim, consisting of 590 hectares of land, will be designated as a separate project area under the Cree Lake Extension Joint Venture.

The sale to Cameco of the full amount of AREVA's interest of 27.94% is subject to JCU (Canada) Exploration Co.'s rights of refusal on transfers under the terms of the Cree Lake Extension Joint Venture agreement. If JCU does not exercise its rights, Cameco will acquire the entire 27.94% interest from AREVA, increasing its ownership interest in the Millennium project to 69.9%. If JCU elects to exercise its rights, it will acquire an additional 11.67% interest and Cameco will acquire an additional 16.27% interest, resulting in Cameco owning 58.23% in the Millennium project.

The transaction is expected to close no later than June 6, 2012 and may close as early as March 15, 2012 depending on the timing of JCU either exercising or waiving its rights under the Cree Lake Extension Joint Venture agreement.