China Nuclear National Corporation to acquires uranium mine in Niger

China Nuclear National Corporation (CNNC) International Ltd. will acquire 37.2 percent of shares of NIG Azelik uranium mine in Niger at a cost not to exceed HK$414 million($53.42 million), the company announced on Monday.

Due to heavy pollution caused by coal and oil, China is promoting its nuclear power development to minimize the consumption of traditional fuels.

CNNC International Ltd. is the only channel through which the parent company CNNC will get uranium resources from oversea. And this deal is the first of its kind in Africa for the company, implementtion is expected in the second half of this year.
 
The company is also seeking acquisitions in Kazakhstan to increase China's uranium reserve and promote its nuclear power development, Philip Li, chief financial officier of CNNC International Ltd. ,told Dow Jones Newswires on Monday.
 
He also said the long-term goal of the company is to become China's biggest uranium provider. If the project pays off, CNNC will acquire or purchase more uranium for the parent company.
 
According to the deal, CNNC will issue a maximum of $53.28 million convertible notes with a duration of three years at the annual interest rate of 2 percent.The conversion price is HK$ 9.5, which is a 15.9 percent premium higher than $HK 8.20 closing price last Friday.
 
With the completion of the convertible notes, CNNC will hold 65.56 percent shares of the parent company, 3.48 percent higher from 62.08 percent.
 

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