[miningmx.com] — URANIUM One said on Wednesday it has the option to buy all the shares of Mantra Resources to be acquired by Russia’s ARMZ, its largest shareholder, for ARMZ’s buy price plus additional expenditures.
ARMZ, the state-owned Russian miner, said earlier it would buy all the issued shares of Mantra, an Australian-based uranium miner, in an all-cash deal worth about A$1.2bn.
ARMZ will pay A$8.00 a Mantra share, a 21% premium on the 20-day average price on the Australian Stock Exchange.
Uranium One will become the operator of Mantra’s Mkuju River project in Tanzania as soon as the ARMZ deal closes.
Once ARMZ’s purchase of Mantra closes, Uranium One will seek shareholder approval to purchase Mantra from ARMZ, a move that would expand Uranium One’s resources by 68%.
Shares of Uranium One closed at C$4.69 on Tuesday on the Toronto Stock Exchange, while shares of Mantra closed up 4.49% at A$7.92 on the Australian Stock Exchange on Wednesday.
