AREVA Concludes Sale of Canadian Millennium Project to Cameco
June 11, 2012
SASKATOON, Sask., June 11, 2012 – AREVA has closed the sale of its 27.94 percent interest in the Millennium mining project to Cameco Corporation for CAD$150 million (about €115 million). This transaction is part of AREVA’s “Action 2016” strategic plan. It contributes to a reduction in the group's net debt and helps to finance the group's strategic and safety investment program.
Under the terms of the agreement, AREVA will receive a 4 percent royalty on revenue from 27.94 percent of any production exceeding 63 million pounds of U3O8 from the Millennium project.
Cameco’s interest in the Millennium project rises to 69.9 percent. The other project partner, JCU (Canada) Exploration Co. Ltd., decided not to increase its stake and maintains its 30.1 percent ownership.
Located in the Athabasca Basin in the north of the Canadian province of Saskatchewan, the Millennium project involves a proposed underground mine currently estimated to contain 50.9 million pounds of U3O8 in indicated resources and 16.7 million pounds of U3O8 in inferred resources.
AREVA has a strong presence in Canada, where the group is one of the largest uranium producers. AREVA is conducting a major exploration program and holds majority interests in several major deposits such as at McClean Lake, Midwest and Shea Creek in Saskatchewan and Kiggavik in Nunavut. AREVA also owns 30.2 percent of the McArthur River mine and 37.1 percent of the Cigar Lake project, the world’s two largest high-grade uranium deposits.