MINING MARKETS & INVESTMENT NEWS — Cameco floats p-shares on U.S. market

Cameco (CCO-T) has sold a US$125-million block of preferred shares in an offering to U.S. investors.

Each preferred share represents a principal amount of US$25 in junior subordinated debentures, which bear annual interest at 8.75% and have a term of 49 years. The offering was underwritten by five U.S. securities dealers, led by Merrill Lynch.

Cameco is using the proceeds of the offering to pay off short-term debt incurred when it bought Uranerz Exploration & Mining and Uranerz U.S.A., the Canadian and U.S. subsidiaries of German fuel giant Uranerz. The sale was completed last August, and included substantial interests in uranium production in Saskatchewan and the western U.S.