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ARMZ mines new opportunities
JSC Atomredmetzoloto (ARMZ) has increased its stake in Uranium One from 51.4 per cent to full ownership in order to further invest in uranium outside of Russia.
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Firms: Ashurst (JSC Atomredmetzoloto (ARMZ)); Stikeman Elliott (Canadian legal advisers to ARMZ); BMO Capital Markets (financial adviser to ARMZ); Goodmans LLP (Canadian legal advisers to U1); Cassels Brock & Blackwell LLP (Canadian legal advisers to U1's independent board committee)
Area: Energy & resources
Value: Implied value of U1: $2.7 billion; consideration paid to minority shareholders: $1.25 billion
Key players: Mark Stanbridge (pictured) and Tanya Denning led for Ashurst
Deal significance: ARMZ is a Russian state-owned enterprise and one of the world's largest uranium mining companies. Uranium One Inc. (U1), is one of the world's largest listed uranium producers with a globally-diversified portfolio of assets located in Kazakhstan, the US, Australia and Tanzania. Prior to the transaction, ARMZ owned 51.4 per cent of U1. U1 owns the Honeymoon uranium mine in South Australia, about 75km northwest of Broken Hill. Honeymoon is one of only four producing uranium mines in Australia, with pilot production commencing in September 2011 and a design capacity of 880,000 pounds U3O8 per annum. Following the completion of this transaction, U1 will be ARMZ's investment vehicle for uranium investments outside of Russia.
