[miningmx.com] — Uranium One on Monday announced record production of 10.7 million pounds and record sales of 9.9 million pounds for the full year 2011.
Uranium One also announced that, under the terms of the previously disclosed Mantra option agreement between the Company and its 51% shareholder ARMZ, it has elected to pay $150m to ARMZ which will both extend the term of the Mantra purchase option from June 7, 2012 to June 7, 2013 and result in Uranium One acquiring a 13.9% stake in Mantra from ARMZ.
Attributable uranium production for 2011 increased by approximately 45% to a record of 10.7 million pounds, compared to 7.4 million pounds in 2010. During the fourth quarter of 2011, attributable production was a record 3.4 million pounds, an approximate 62% increase compared to 2.1 million pounds produced during the fourth quarter of 2010.
Attributable uranium sales for the full year 2011 were a record of 9.9 million pounds, representing an approximate 43% increase compared to 2010 attributable sales of 6.9 million pounds. During the fourth quarter of 2011, the attributable sales volume was a record of 3.2 million pounds, representing an approximate 10% increase in sales compared to 2.9 million pounds during the fourth quarter of 2010.
Under the terms of the agreement between Uranium One and ARMZ announced on March 21, 2011, the Company has elected to pay $150m to ARMZ which will both extend the term of the Mantra purchase option from June 7, 2012 to June 7, 2013 and result in Uranium One acquiring a 13.9% stake in Mantra from ARMZ, subject to receipt of all required regulatory approvals which are expected before the end of the first quarter of 2012.
The exercise of the option to acquire the remainder of Mantra continues to be subject to Uranium One minority shareholder approval.