Cameco likely to sell stake in Centerra Gold
14 Nov 2009
Canada-based Cameco Corp, the world's second-largest uranium miner with significant operations in Saskatchewan, is planning to sell its 49 per cent stake in the Toronto-based gold producer Centerra Gold Inc. or to divest it through a secondary stock offering, to focus on investments in uranium mining and nuclear energy, chief executive officer and president Jerry Grandey said yesterday.
''We will, in a disciplined fashion, exit'' the investment in Centerra, Grandey said in an interview in New York.
''The issue is whether we find a strategic buyer, do we do it secondary, can we do it all at once, do we two it in two tranches. We're evaluating various options,'' he added.
Rising gold prices have helped overcome buyers' concerns that political and regulatory obstacles will hinder operations at Centerra's mines in the Kyrgyz Republic and Mongolia, Grandey said.
''We've seen a number of parties that wouldn't look at it before look at it,'' Grandey said.
The Kyrgyz Republic, home to Centerra's Kumtor mine, has sought a stake in the gold company, while Mongolia in June suspended operating permits for the company's Boroo mine and said it may revoke them.
