Cameco, Uranerz close $160 million Rabbit Lake deal

Government-owned mining company Cameco has completed the sale of a one-third interest in its Rabbit Lake uranium mine to Uranerz Exploration and Mining, a unit of West Germany’s Uranerzbergbau-Gmbh.

.TUranerz paid $160 million for its stake in the open pit uranium mine which is in northern Saskatchewan, about 800 km northeast of Saskatoon.

Included in the sale is a one- third interest in the mill, as well as three Collins Bay uranium deposits, the Eagle South deposit and the surrounding exploration properties. Uranerz was already a one-third partner in the Eagle North deposit. With common ownership, the two Eagle Lake deposits will now be developed as one underground mine.

Current uranium reserves on these properties will support mill operations well into the next century, says Cameco. The mill is capable of producing 12 million lb. of uranium oxide as yellowcake annually.

Both the Rabbit Lake mine and the Key Lake mine, Saskatchewan’s other large uranium producer, now share a common ownership structure of Cameco, two-thirds, and Uranerz, one-third. Cameco will continue to operate both mines.