Vancouver’s Uranium One Inc. has entered into a long-term agreement with a Japanese consortium to sell up to 20 percent of the uranium available with it to help provide power to Tokyo, Japan’s largest city.
At present, the consortium comprising Toshiba Corp., the Japan Bank for International Cooperation and the Tokyo Electric Power Company Inc. provides power to the Tokyo Metropolitan Area. About 28 percent of the city’s electricity is generated from nuclear power.
The trio have agreed to buy 117 million shares in Uranium One through a private placement at a price of C$2.30 each ($1.9 at current exchange rates), a total investment of approximately C$270 million ($220 million). They are to take a holding of nearly 20 percent of Canada-based uranium producer Uranium One and also agreed on an uranium offtake deal entitling them to buy up to 20 percent of Uranium One’s production.
The purchase gives the consortium a 19.95 percent stake in Uranium One, while a uranium offtake agreement signed at the same time gives the Japanese consortium an option to purchase up to 20 percent of Uranium One’s available production.