JOHANNESBURG (miningweekly.com) – The Kazakh Ministry of Energy and Mineral Resources (MEMR) has approved TSX- and JSE-listed Uranium One’s acquisition of a 50% joint-venture (JV) interest in the Karatau uranium mine, from State-owned JSC Atomredmetzoloto (ARMZ).

The company said on Monday that the approval also included a waiver of the pre-emptive right of the Kazakh State under the Subsoil Use Law of Kazakhstan.

The acquisition of Karatau, which was announced in June, would boost Uranium One’s production by 2,3-million pounds of uranium oxide in 2010.

The miner said on Friday that it expected to produce 6,8-million pounds of uranium in 2010, if the Karatau transaction is completed by year-end. It initially targeted 7,5-million pounds for 2010.

At full production, Uranium One’s share of production from the JV project was expected to be 2,6-million pounds a year. The mine would reach its full capacity in 2010.

Uranium One said it expected to close the acquisition on December 15, subject to approvals from the Kazakh Anti-Monopoly Commission and the Australian Foreign Investment Review Board.

The purchase price would be paid by way of the issuance of 117-million common shares of Uranium One and a cash payment of $90-million. The purchase agreement also provides for a contingent payment to ARMZ of up to $60-million, payable in three equal tranches over the period between 2010 and 2012 subject to certain post-closing tax-related adjustments.

A long-term offtake agreement and framework agreement previously agreed by the  parties would become effective upon closing of the purchase agreement.

Meanwhile, Uranium One has appointed ARMZ DG Vadim Zhivov to its board of directors effective on closing and subject to regulatory approval.

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