Thursday, March 1, 2012

Talvivaara receives approval to recover uranium for Cameco

The Finnish government announced today that Talvivaara Mining Company Plc has received approval to recover uranium from their existing nickel mine in Sotkamo, Finland. Talvivaara is building a separate uranium extraction circuit at the Sotkamo mine to facilitate recovery. The uranium extraction circuit still requires approval from the Finnish Radiation and Nuclear Safety Authority (STUK). The operation also requires approval from the Regional State Administrative Agencies (AVI) for Northern Finland.

Saskatoon, Saskatchewan-based Cameco has executed two agreements with Talvivaara. Under the first agreement with Talvivaara, Cameco will provide an up-front investment, to a maximum of $60 million USD to cover the construction cost of the uranium extraction circuit. Cameco’s capital contribution will be repaid through the initial deliveries of uranium concentrates under the first agreement. Once the capital is repaid, Cameco will purchase the uranium concentrates produced at Sotkamo through a second agreement that ends on December 31, 2027. The second agreement will provide Talvivaara payments for the uranium, based on a formula that references market prices at the time of delivery.

Cameco has and will continue to provide technical assistance to Talvivaara in the design, construction, commissioning and operation of the uranium extraction circuit to be constructed at the Sotkamo operation.

Source: Helsingin Sanomat - with thanks again to my wife, Minna-Riitta for the translation

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