Areva buys into Summit Resources

[Summit, 11 April] Areva of France and Summit Resources of Australia have entered into an agreement to form a strategic alliance. Under the agreement, Areva will initially buy 19.5 million Summit shares at a price of A$6.20 ($5.11) each, representing A$121.1 million ($100 million) to acquire a 9% shareholding in Summit. Areva may later increase its stake in Summit to 18% by buying additional shares at A$7.20 ($5.94) each, taking the investment to A$292.6 million ($241.3 million). Summit controls the Valhalla uranium deposit in northwest Queensland, with 26,000 tonnes U3O8 as indicated and inferred resources, but which is open and likely to increase. Another 11,500 tonnes of resources nearby are also part of the Mount Isa uranium joint venture with Paladin Resources. Under the new agreement, Areva will also market two-thirds of Summit's Australian uranium production. In addition, Areva will provide technical consulting services to Summit on the exploration and further development of the Mount Isa uranium project. Summit says the deal with Areva should have no effect on a takeover bid from Paladin, which the board has previously recommended shareholders reject.

Further information

Areva
Summit Resources