Cameco boosts Cigar Lake stake to 57% in $84M TEPCO deal

Cameco Corp. will pay C$115.75 million ($83.6 million) to acquire TEPCO Resources' 2.871% participating interest in the Cigar Lake joint venture, lifting its ownership of the world's highest-grade uranium mine to 57.418%.

"The Cigar Lake is among the world's best uranium mines, producing the highest-grade uranium ore from a safe, reliable and cost-effective operation," Tim Gitzel, chief executive officer of Cameco, said in a statement. "Increasing our ownership in this world-class, tier-one asset further demonstrates our commitment to our strategy, with scarce, licensed, permitted assets like Cigar Lake playing an essential role in fueling global ambitions to expand nuclear energy generation."

Cameco and its joint venture partner Orano Canada are jointly acquiring the 5% participating interest held by TEPCO Resources, a subsidiary of Tokyo Electric Power Company. Orano will pay for its 2.129% share, bringing its total interest to 42.582%. The transaction is subject to regulatory approvals and is expected to close in the third quarter of 2026.

Cigar Lake, located about 660 kilometers north of Saskatoon, Saskatchewan, has produced 174.5 million pounds of uranium concentrate (U3O8) since commissioning in 2014. The mine holds 172.4 million pounds of proven and probable reserves, plus 26.3 million pounds of measured and indicated resources and 20 million pounds of inferred resources, based on 100% ownership. Cameco expects the mine to produce between 17.5 million and 18 million pounds of U3O8 in 2026 on a full-project basis.

Cigar Lake Extension Underway

Cameco is advancing the Cigar Lake extension project, known as CLExt, which includes installation of a freeze pad, freeze distribution systems and expansion of underground infrastructure. The company aims to extend the mine's operating life to 2036. Cameco and Orano are also partners at the McArthur River mine and Key Lake mill, both in Saskatchewan, giving the two companies dominant control over Canada's uranium supply chain.

The acquisition comes as nuclear energy gains policy momentum globally, with governments from Japan to France expanding reactor programs and extending existing plant lifetimes. Cameco, as one of the world's largest uranium producers, is positioned to benefit from rising utility contracting demand. The C$115.75 million purchase price values TEPCO's 5% interest at roughly C$23 million per percentage point, implying a total Cigar Lake valuation of about C$2.3 billion based on the transaction.

This article is for informational purposes only and does not constitute investment advice.