ROSATOM, Russia's nuclear holding company, has launched a $1.6 billion bid for Africa-focused Mantra Resources.
Shares in the Australian-listed company jumped 4.49 per cent to $7.92 after the emerging miner announced the Russian bid. Perth-based Mantra's flagship project is at Mkuju River in Tanzania.
It said Rosatom, through its subsidiary ARMZ Uranium Holding, had offered $8 per share -- a 5.5 per cent premium to its last trading price before the shares were halted prior to the takeover announcement.
"This clean, all-cash offer from ARMZ is compelling and reflects both the strategic significance of this asset as well as the current status of the project against the backdrop of a recent spike in the uranium price," Mantra chief executive Peter Breese said.
"The offer crystallises immediate value for Mantra shareholders, providing them with the certainty of cash. We have taken advice from our financial and legal advisers and concluded that this offer is in the best interests of Mantra's shareholders."
ARMZ, the world's fifth-largest uranium producer, said Mantra's flagship project was a "world-class deposit".
"We believe Mantra will complement our portfolio of assets and is consistent with our stated strategy of acquiring low cost, long life, geographically diverse assets," ARMZ director-general Vadim Zhivov said.
Mantra's board recommended the offer and said Highland Park, which owns 13.5 per cent of the company, had said it would vote its shares in the absence of a superior proposal.
Rosatom has been aggressively looking to expand its uranium foothold to secure future energy supplies and had signed a five-year memorandum of co-operation with Namibia to develop uranium deposits, pledging to spend $US1bn ($1.007bn) in the region.
The Moscow-based company even submitted a mine plan for Extract Resources' South Rossing deposit in Namibia, saying it could fund the development, and has also been rumoured to be eyeing Paladin Energy, which also focuses on Namibia. In June, Rosatom bought a controlling stake in Uranium One, which owns 51 per cent of the Honeymoon uranium project in South Australia.
Mantra announced last month that aggressive drilling had led to a mineral resource estimate at the Mkuju River project being updated to 101.4 million tonnes of uranium oxide concentrate, a 20 per cent increase.
(20min delay)