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Honeymoon owner to merge with rival
Email Print Normal font Large font February 13, 2007

CANADIAN uranium miner sxr Uranium One has agreed to buy national rival UrAsia Energy in a deal that will create the world's second biggest uranium miner by market capitalisation.

The merged company will be worth $US5 billion ($6.45 billion) and be the only company with mines in Australia, the US, South Africa, Canada and Kazakhstan.

Uranium One owns the Honeymoon Uranium project in South Australia, which it said would come into production in the first quarter of 2008.

Under the terms of the acquisition, UrAsia shareholders will receive 0.45 common shares of Uranium One for each issued share of UrAsia, representing a value of $C7.05 ($7.67) per share based upon the closing price of Uranium One on the Toronto Stock Exchange on February 9.

If the merger is approved, the company will be named Uranium One.