Uranium a purchase out of uranium of the United States of marks

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Uranium One bought U.S. Energy Corp.'s Shootaring Canyon uranium mill, a deal boosted by the growing demand for and the rising prices of nuclear fuel.

Uranium One, based in Toronto, will pay 6.6 million shares for the deal, which also includes Riverton, Wyo.-based U.S. Energy's uranium mining projects in Utah, Wyoming, Arizona and Colorado.

The Canadian firm will also pay $20 million when Shootaring begins producing uranium; $7.5 million when uranium from the other mines first begins shipments to Shootaring; and 5 percent -- $12.5 million maximum -- of gross proceeds from Shootaring sales.

Shootaring was commissioned in 1982 and operated for four months until depressed uranium prices put the mill out of business, reports World Nuclear News, a service of the global industry's trade arm, the World Nuclear Association. Global demand for uranium is expected to jump and prices have increased from the $10 a pound then to $113 a pound now. It has spiked by more than 50 percent since October.

Shootaring has a processing capacity of 1,000 tons a day but is licensed for just 750 tons. Production is expected to begin next year.

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