A scoop loader at the Cameco McArthur River uranium mine site in northern Saskatchewan.STRINGER/CANADA
Cameco Corp. said Tuesday it has signed a deal to sell its remaining stake in Centerra Gold Inc. for $872-million.
The uranium miner said a syndicate of underwriters led by CIBC World Markets Inc. and RBC Capital Markets has agreed to purchase the 88.6 million shares of Centerra held by Cameco at a price of $10.25 per share.
Cameco will also transfer 25.3 million shares of Centerra to Kyrgazaltyn JSC under an agreement with the Kyrgyz Republic government.
Shares of Centerra were down $1.41 or about 11 per cent at $11.19 before they were halted pending the announcement. Cameco shares were down $1.54 at $31.17 before they were halted.
The Saskatoon-based company, which held a 48.5 per cent stake in Centerra, said it plans to use the cash to grow its core uranium business as it pursues its target of doubling uranium production.
Cameco spun off its gold operations as Centerra in 2004.
Centerra has operations in Central Asia, the former Soviet Union and other emerging markets.