Cameco Corp. (CCJ) said Thursday it joined with Mitsubishi Corp. 8058.TO) to buy the Kintyre uranium project in Western Australia from Rio Tinto Ltd. (RTP) for US$495 million. The Canadian uranium miner said it will operate the project, which will be a joint venture with Cameco owning 70% and Mitsubishi 30%, and the transaction is expected to close in August subject to approval from the traditional owners of the land. Cameco said that on the basis of the due diligence it has carried out on the asset, Kintyre is estimated to hold between 62 million and 80 million pounds of uranium in total at average grades of between 0.3% and 0.4%. The sale of Kintrye is part of Rio Tinto's planned sale of US$15 billion worth of assets, with the miner targeting sales of US$10 billion of assets this year as it pays down the US$40 billion debt it took on to fund its acquisition of Alcan.
VMY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
