Cameco Announces Agreement with Cogema.SASKATOON Saskatoon (săskət  n`), city (1991 pop. 186,058), S central Sask., Canada, on the South Saskatchewan River. , Saskatchewan--(BUSINESS WIRE)--May 5, 1999--Cameco Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CCO (Chief or Corporate Compliance Officer) The executive person in charge of compliance issues, regulatory requirements, internal controls and managing audits within an enterprise or organization. .)(ME:CCO.)(NYSE NYSE See: New York Stock Exchange :CCJ See citizen journalism. ) today announced a transaction in which Cogema Resources Inc. will acquire an interest in selected uranium uranium (y rā`nēəm), radioactive metallic chemical element; symbol U; at. no. 92; at. wt. 238.0289; m.p. 1,132°C;; b.p. 3,818°C;; sp. gr. 19. assets for approximately $243 million subject to
closing adjustments, representing a pre-tax gain of about $63 million to
Cameco.The transaction is subject to receipt of all necessary regulatory approvals and will be effective as of January 1, 1999. In particular, Cogema will acquire 14 percent of McArthur River, 17 percent of Key Lake (where the McArthur River ore The River Ore is a wide tidal estuary river in Suffolk, England. It is a river with a split personality, having only one bank -- the Southern and Western bank are of the Ore giving Orford its name, whilst on the Northern and Eastern bank, the river is known as the River Alde giving will be milled beginning in late 1999). Subject to other Midwest joint venture owners' first refusal rights, Cogema will also acquire Cameco's 20 percent interest in the Midwest Lake project. After the transaction, Cameco will own 83 percent of the Key Lake operation and 70 percent of the McArthur River project. Cameco will continue to own 100 percent of the Rabbit Lake Rabbit Lake can refer to:
(See table below for ownership changes). "This transaction allows the company to monetize Monetize 1. To convert into money. 2. To convert from securities into currency that can be used to purchase goods and services. Notes: For example, you'll often hear Internet marketers talk about "monetizing website visitors. immediately a portion of the 483 million pounds U3O8 of reserves and resources at McArthur River, thus providing greater financial flexibility to pursue other growth opportunities which will enhance shareholder value," said Bernard Michel, Cameco's chair, president and chief executive officer. "During 1998, reserves at McArthur River were increased by 66 million pounds U3O8. We concluded that it was beneficial for Cameco and its shareholders to realize today some of the value associated with the additional reserves." The funds will initially be used to pay down debt. -0-
Ownership Changes
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Property Ownership Before Ownership After
Transaction Transaction
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Percent Percent Percent Percent
Cameco Cogema Cameco Cogema
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McArthur River 83.766 16.234 69.805 30.195
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Key Lake 100 0 83.333 16.667
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Rabbit Lake 100 0 100 0
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Midwest 20 56 0 76
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Cigar Lake 50.025 37.100 50.025 37.100
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Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest publicly traded uranium producer. Its products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. |
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