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RUSSIAN state nuclear corporation Rosatom has struck a deal with Canadian uranium producer Uranium One in which Uranium One will acquire 50% of the Karatau uranium mine in exchange for 117m shares and $90m.

The Karatau mine in Kazakhstan is owned by JSC Atomredmetzoloto (ARMZ), the Russian state-owned uranium mining company, which is in turn owned by Rosatom. ARMZ/Rosatom’s holding in Uranium One will be equivalent to 16.6%, although this stake may not be increased beyond 19.95% in the next five years without Uranium One’s permission. Uranium One may also make a contingent payment to ARMZ of up to $60m.

Uranium One and ARMZ have also entered into an offtake agreement, under which ARMZ may purchase the greater of 50% of Karatau’s annual production and 20% of Uranium One’s available attributable production on an annual basis. Uranium One also has the exclusive right to negotiate the acquisition of ARMZ’s Akbastau Uranium Project, adjacent to the Karatau mine, and will also have the right to make the first offer on ARMZ’s assets outside Russia.

The companies expect the deal to be complete before the end of 2009.

Jean Nortier, president and ceo of Uranium One says: “The acquisition of a 50% stake in Karatau adds another long-life, large-scale and high margin asset to our portfolio and will significantly enhance Uranium One’s production profile and cement its position of leadership in the Kazakh uranium mining industry. The completion of this transaction, as well as our previously-announced private placement with the TEPCO/Toshiba/JBIC consortium, will give us long-term partnerships with the governments of Russia, Japan and Kazakhstan, as well as some of the most influential customers and suppliers in the global nuclear industry.”