UPDATE 1-Uranium One gets final approval for ARMZ deal

* U.S. nuclear regulator approves ARMZ buyout

* Deal to close by end of 2010

* Shares up 7.74 percent at C$5.01

* No payment date set for special $1.06 dividend (In U.S. dollars unless noted)

TORONTO, Nov 24 (Reuters) - Uranium One (UUU.TO) said on Wednesday that it had received approval from the U.S. Nuclear Regulatory Commission to proceed with its deal to sell a controlling stake in itself to a Russian state-owned miner.

The Toronto-based uranium producer said it will begin the initial closing by issuing 178 million new common shares to ARMZ, a division of Russian nuclear agency Rosatom, in exchange for $610 million in cash.

In the final stage of closing, Uranium One will acquire a 50 percent interest in the Akbastau mine and a 49.67 percent interest in the Zarechnoye mine, both located in Kazakhstan.

The company said the deal will close before the end of December.

Upon closing, a special dividend of $1.06 will be paid to all non-ARMZ shareholders. Uranium One said it will announce payments dates for the dividend after the initial closing is completed.

Shares in the company were up 7.74 percent at C$5.01 on the Toronto Stock Exchange on Wednesday. Bigger Canadian uranium producer Cameco (CCO.TO) was up 3.83 percent at C$37.38, while Australia's Paladin Energy (PDN.TO) was up 3.25 percent at C$4.77 in Toronto.

($1=$1.01 Canadian) (Reporting by Julie Gordon; editing by Rob Wilson)