TORONTO (miningweekly.com) – Uranium-miner Uranium One has bought a stake in rival Paladin Energy, the company confirmed on Friday, stating that the shares were purchased “for investment purposes”.

Shares in Paladin, which operates uranium mines in Malawi and Namibia, rose 6,3% in Toronto on Friday, after the company said at least 9,84-million shares had been acquired by Cheetah Resources, a subsidiary of TSX- and JSE-listed Uranium One.

Paladin had not been contacted by either Cheetah Resources or Uranium One in regard to the shareholding “and is not aware of their intentions in relation to the holding”, the firm said in a statement.

Uranium One produces uranium from mines in Kazakhstan, and owns 51% of the Honeymoon project, in Australia, as well as some processing facilities and deposits in the US.

The company “ continually reviews its investment alternatives and may, from time to time, acquire additional shares or dispose of its holdings of shares in Paladin”, it said in a statement.

There has been speculation for some time about looming consolidation in the uranium sector, and some analysts have suggested Paladin could be a target for Canada's well-capitalised Cameco Corp.

Uranium One has also indicated it is on the prowl, and CEO Jean Nortier has expressed interest in buying African assets in particular.

Shares in Uranium One slid 3,01% on Friday, to C$2,57 apiece by 16:10 in Toronto.

Paladin gained 22 Canadian cents, to end at C$3,72 a share. The stock traded as high as C$3,85 apiece earlier in the day.

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