TORONTO (miningweekly.com) – Shareholders in Uranium One have approved a transaction that will result in Russian government-owned uranium-miner Atomredmetzoloto (ARMZ) holding 51% of the company.

About 95,05% of the votes cast at a meeting in Vancouver on Tuesday, were voted in favour of the deal and around 91,99% of the votes cast by shareholders other than ARMZ and its affiliates, were voted in favour, Uranium One said.

The Russian company will increase its ownership in Uranium One in exchange for stakes in two uranium mines in Kazakhstan and $610-million in cash.

ARMZ falls under Rosatom – the Russian State company controlling the nation's nuclear activities - and already holds 23% of Uranium One, most of which was acquired when it sold its 50% of the Karatau mine, also in Kazakhstan.

Top officials from both ARMZ and Rosatom have travelled to Canada in the last month, to meet with shareholders and analysts.

The companies have said they plan to use Uranium One as a vehicle for international growth, but will keep the firm publicly listed.

Besides the 50% in Karatau, Uranium One owns 70% of the Akdala and South Inkai mines in Kazakhstan, as well as 30% of the Kharasan mine, also in Kazakhstan. The company also has assets in the US, where it plans to start production next year, as well as in Australia.

Under the deal approved on Tuesday, Uranium One will buy ARMZ's 50% interest in the Akbastau uranium mine and its 49,67% interest in the Zarechnoye uranium mine, which will together boost the firm's steady-state production from its Kazakh assets by around 60%, to some 16-million pounds a year.

The companies received approval for the transaction from the Kazakhstan Industry and New Technologies Ministry last week.

After the deal closes, Uranium One will use part of the cash from ARMZ to pay what it calls a “change of control premium” to shareholders, in the form of a special dividend of $1,06 a share.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.