SOURCE: Paydirt

DATE: May 1998

Cameco buys Uranerz

Cameco buys Uranerz

Cameco reports it has acquired Uranerz USA at a cost of $483 million. Although the deal is subject to regulatory approval, the purchase will increase Cameco's reserve base in the US by about 23 million pounds, and will also increase Cameco's total uranium reserves by 30%. The principal assets acquired are 33.33% in Key Lake and Rabbit Lake (C ameco now wholly owns those properties), a 27.92% interest in McArthur River, and a 57.69% interest in Crow Butte, plus assorted uranium and gold properties in the US, Canada and Kazakstan. Cameco also has agreed to buy a 6.45% interest in Energy Resources of Australia, with closing anticipated this summer. Cameco also reported that the Canadian and Saskatchewan governments have okayed an advance in the approval process of the Cigar Lake uranium project. (See story below.)