October 15, 1996
Uranium companies announce purchase
Cameco Corporation announced Tuesdayits intention to buy Power Resources,Inc, one of Wyoming's leading uraniumproducers.
Cameco, based in Saskatoon, Saskatchewan, Canada, has entered into a comprehensive agreement to purchase from a subsidiary of Magnox Electric plc, a United Kingdom entity, all of that company's North American holdings.
Cameco has agreed to pay $105 million
The purchase is subject to regulatory approval.
In Wyoming, PRI has production from it's Highland Mine and Mill north of Glenrock and Douglas. The company has extensive uranium holdings in the Gas Hills of Fremont County, where development work for an ISL Mine has been ongoing this summer.
The purchase adds over 1 million pounds of U3O8 to Cameco's annual production and increases Cameco's already large reserve and resources base by adding 37 million pounds (or 10 percent) of uranium reserves in the proven and probably category and another 85 million pounds (or 40 percent) in the resource category. Cameco also gains interests in several well-located exploration projects in Canada.
The deal provides Cameco with important know how in the application of in situ leach technology, the low-cost method of extracting uranium from certain types of deposits.
PRI has its head office Denver: which has been directed by Pete Cooper, president. Steve Morzenti is vice president for development at the Casper office. L.C. McGonagle is manager of uranium operations at the Highland Mine.
PRI is one of the largest uranium producers in the United State employing 67 people. It owns 74.25 percent and is the operator of the Highland ISL Mine. Highland produces over 1 million pounds of U3O8 a year. It has an annual capacity of 2 million pounds, with added production fields, through its present Mill.
Adding the PRI production represents about a 6 percent increase in Cameco's current production capabilities.
Cameco also owns about 32 percent of the Crow Butte ISL mine in Nebraska through its subsidiary, Geomex Minerals, Inc. It owns other significant Wyoming reserves which could be processed through the Highland facility.
"This acquisition (of PRI) enhances our uranium reserve base and production capability and gives us access to exceptional operating experience," said Bernard Michel, Cameco's chair, CEO and president.
"PRI's expertise will be most valuable in our ongoing assessment of other ISL opportunities. The strategic location of Highland's processing plant to Cameco's other ISL properties is an added benefit," said Michel.
Michel said Cameco intends to maintain its U.S. presence, restructure its U.S. uranium activities, and increase production from existing undeveloped reserves and resources.
Cogema owns the other approximate 25 percent of Power Resources.