Cameco Moves To Concentrate On Uranium Business

Cameco Moves To Concentrate On Uranium Business

Wednesday, December 09, 2009 at 15:14

Cameco is selling its interest in gold, in order to focus on producing uranium.

The corporation is selling more than 88 million shares of Centerra at $10.25 per share.

A group of syndicate underwriters, including CIBC World Markets Inc and RBC Capital Markets, will buy and resell the entire public offering of shares.

Cameco spokesman Lyle Krahn says the corporation’s plan is to double uranium production by 2018.

Krahn says this would mean producing 40 million lbs. of uranium a year.

The deal is expected to provide Cameco with net proceeds of about $870 million, money Krahn says Cameco can use in the development of operations such as Cigar Lake.