Following last week’s string of serious accidents at a
Japanese nuclear power plant, uranium producer ARMZ has called off a deal to
purchase Mantra Resources.
Mantra shareholders in December backed an offer from the
Russian company that would have paid a 5.5 percent premium on its share price
at the time. Instead, Mantra announced last week that events at the
earthquake-damaged Fukushima Daiichi nuclear plant would have a material adverse
affect on Mantra’s business, giving ARMZ room to renegotiate or back out of the
deal.
“ARMZ has indicated to Mantra that it intends to continue
discussions with Mantra in an effort to explore how the transaction between two
companies may proceed by way of an alternative approach,” the company said in a
release.
Last year, ARMZ acquired a controlling interest in Uranium
One, and the smaller company had entered an agreement to purchase Mantra.
Australia-based Mantra’s flagship mining project is at the
Mkuju River site in Tanzania. ARMZ, also known as JSC Atomredmetzoloto, is one
of the world’s largest uranium miners.