Cameco Raises Cigar Lake Stake to 74.2% with CAD1.45B Buy
CCJ•Cameco closed a transaction to acquire an additional 14.8% interest in the Cigar Lake uranium mine from Orano Canada for CAD1.45 billion, boosting its stake to 74.2%. The deal secures access to an extra 8.5 million pounds of U3O8 production capacity through 2030.
1. Deal Completion
Cameco finalized the acquisition on July 2, purchasing a 14.8% interest in the Cigar Lake mine from Orano Canada for CAD1.45 billion in cash. This closes the strategic transaction announced earlier this year.
2. Ownership Change
The purchase raises Cameco’s direct ownership from 59.4% to 74.2%, making it the majority operator of one of the world’s highest-grade uranium mines. Orano’s stake declines to 15.9%, with remaining interests held by other partners.
3. Financial Terms
The CAD1.45 billion payment was funded through a combination of existing cash reserves and a new credit facility, with no immediate impact on Cameco’s dividend policy. The deal is expected to be accretive to free cash flow by 2027.
4. Production Impact
Cigar Lake’s annual output of roughly 20 million pounds of U3O8 will increasingly benefit Cameco, adding approximately 8.5 million pounds of attributable production through 2030. This secures a larger share of high-margin uranium supply for Cameco’s sales portfolio.
