Uranium produced by Vancouver's Uranium One Inc. (TSX:UUU) will help provide power to Japan's largest city.
Uranium One Inc. has entered into a long-term agreement with a Japanese consortium to buy up to 20% of Uranium One's available uranium.
The consortium includes Toshiba Corp., the Japan Bank for International Cooperation and the Tokyo Electric Power Company Inc., which provides power to the Tokyo Metropolitan Area. About 28% of the city's electricity is generated from nuclear power.
As part of the deal, the consortium will buy 117 million common shares of Uranium One for approximately $270 million. The private placement issue price of $2.30 per share represents a 15% premium on the 20-day volume-weighted average price of Uranium One's TSX shares.
Following completion of the deal, the consortium will own 19.95% of Uranium One.
The consortium will also have the right to appoint two directors to Uranium One's board and the right to invest in any uranium mining asset or project that Uranium One decides to make available to third parties.
Uranium One's share price range during the past week: between $1.70 and $2.01; 52-week high: $7.05; 52-week low: $0.60.