Uranium One Completes Australian Joint Venture Transactions with Mitsui
Trading Symbols: UUU - Toronto Stock Exchange, JSE Limited
(Johannesburg Stock Exchange)
VANCOUVER and JOHANNESBURG, South Africa, Dec. 24 /CNW/ - Uranium One
Inc. ("Uranium One") and Mitsui & Co., Ltd. of Japan today announced that all
regulatory approvals required to close the joint venture transactions
previously announced on October 15, 2008 have been obtained. Mitsui has now
acquired a 49% interest in the Honeymoon project and Uranium One's Australian
exploration portfolio including the Goulds Dam and Billeroo projects, and
other prospective tenements on the Stuart Shelf and Eyre Peninsula.
The total minimum cash commitment from Mitsui will be approximately A$104
million for its share of Uranium One Australia's business. The majority of
these funds will be used to advance the development of the Honeymoon project
through to commercial production.
Greg Cochran, Uranium One's Executive Vice President Australia and Asia,
said:
"We greatly appreciate the efforts of the Federal and State regulators to
provide the necessary approvals to close this transaction within a short
timeframe and we are delighted to welcome Mitsui as our new partner and look
forward to working with them. We expect to commence site development work at
the Honeymoon project early in the New Year. The project has a design capacity
of 880,000 lbs U(3)O(8) per year with an expected mine life of 6 years and
production is expected to commence in 2010."
South Australia State Premier Mike Rann commented:
"The South Australian Government welcomes the agreement between Uranium
One and Mitsui of Japan and looks forward to work beginning on construction of
the Honeymoon mine. The decision by an overseas investor to commit millions of
dollars to develop this mine amid the current global economic uncertainty
highlights the confidence resource companies have in South Australia. The jobs
and investment flowing from this joint venture agreement will support the
long-term economic development of this State and provide important export
earnings for Australia."
Mr. Fuminobu Kawashima, Executive General Manager of Mitsui's Energy
Division, expressed his satisfaction at completing the transaction and
said:
"Mitsui has a long and successful investment history in various resource
sectors in Australia. It is our great pleasure to extend our business
portfolio through this transaction with Uranium One. We hope the joint venture
will contribute to long-term growth of both companies and the local economy."
About Uranium One
Uranium One is one of the world's largest publicly traded uranium
producers, with a globally diversified portfolio of assets located in
Kazakhstan, the United States, South Africa and Australia.