Cameco will also receive NUKEM’s net debt of $164m, though cash generated from ongoing business activities is expected to reduce the majority balance of debt before the deal closes.
Cameco president and CEO Tim Gitzel said this acquisition complements the company’s business by strengthening its position in nuclear fuel markets and improving access to unconventional and secondary sources of supply.
"After closing, it is expected that NUKEM will add solid cash flow and will have a positive impact on earnings starting in 2013," added Tim.
The agreement also includes provisions to provide Advent with a share of NUKEM’s future earnings until the end of 2014.
NUKEM has sold about 12 million pounds of uranium in 2011 with about 4.5 million pounds of uranium available and expects to sell 10 million to 15 million pounds in 2012.
The deal is expected to close in the fourth quarter of 2012, following which NUKEM will continue to operate as an independent company.
