TORONTO (miningweekly.com) – Shares in uranium-miner Uranium One started the week off on a sour note, falling 4,09% in Toronto, where most of the company's stock is traded, and 11,2% on the JSE.

Shares in the company dropped almost 40% in Toronto on May 27, after reports out of Kazakhstan that the head of State uranium company Kazatomprom had been arrested, and Kazakhstan's National Security Committee (KNB) said that it was investigating deals made by the disgraced CEO, who had “illegally” sold stakes in uranium assets.

All three of Uranium One's producing assets are located in Kazakhstan.

The company's shares rebounded on May 28, to C$2,42 apiece in Toronto, but have since fallen back to C$2,11 by the close of trade on Monday.

Last week, the KNB said that the sale of 30% in the Kyzylkum joint venture, which owns the Kharasan mine, was one of the transactions being investigated.

However, Uranium One CEO Jean Nortier said that any perceived link to his company was “a complete misunderstanding”.

Although Uranium One owns 30% of Kyzylkum, it bought it from private investors, not Kazatomprom.

In the latest development, Reuters reported on Monday that the KNB has accused former Kazatomprom CEO Mukhtar Dzhakishev of pocketing resources of the nuclear fuel worth billions of dollars, by transferring them to foreign companies he controlled.

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