Cameco Moves In On Mining Company

Friday, August 26, 2011 at 14:14



Cameco is moving ahead with a hostile takeover bid for a northern mining company.


Hathor Resources operates primarily in the Athabasca Basin and recently discovered the Roughrider Uranium Deposit.


The high-grade ore body is located twenty-five kilometres northwest of Cameco’s Rabbit Lake Mill.


This morning Cameco announced it was offering Hathor stakeholders $3.75 a share.


Cameco C.E.O. Tim Gitzel says they tried to work out a joint-arrangement with Hathor but talks fell through.


He believes the Roughrider deposit is ripe for development.


Gitzel stresses no northerners will lose their jobs if the takeover bid goes through, and hundreds more will be added if a mine goes ahead.


For its part, Hathor Exploration is describing the offer as not enough.


Spokeswoman Kelsea Murray says an analyst from Dundee Securities has their current target price listed at $5.60 based on present value.


She also says other acquisitions in the Uranium industry are drawing much higher dollar amounts and the Roughrider Deposit is among the richest in the world.


She says the company will be releasing a statement soon outlining their next steps.