To further expand their uranium supply, state-owned China National Nuclear Corporation (CNNC) Overseas Uranium Holding Ltd. has come to a purchase agreement with Canada’s Khan Resources worth US$53 million.
Khan Resources is a uranium development company based in Mongolia, with their subsidiary Central Asian Uranium Company Ltd. (CAUC) primarily focused on the Dornod province in the country’s northeast.
CNNC’s acquisition would grant them a 58 percent stake in CAUC and access to the Dornod field, which has at least 22,000 tons of uranium reserves.
This news comes after an unsuccessful attempt at a hostile takeover of the Canadian company by Russia’s state-owned AtomRedMetZoloto in December, who has a 21 percent stake in CAUC.