The world’s top uranium producer said a syndicate led by BMO Capital Markets and RBC Capital Markets have agreed to purchase about 23.19 million of its shares at a price of C$17.25 per share, a discount of 9.78 percent to Wednesday’s closing price.
Cameco, which planned to cut costs and defer projects due to the credit crunch, said underwriters have an over-allotment option to purchase up to a further C$60 million of stock.
The company has had to rely on short-term debt to fund fluctuations in working capital due to the uncertain timing of contract uranium sales.
Cameco shares, which have lost more than 40 percent of their value in the past six months, closed Wednesday up 95 Canadian cents at C$19.12 on the Toronto Stock Exchange. ($1=1.260 CANADIAN DOLLAR) (Reporting by Krishna Chaithanya in Bangalore; Editing by Vikram S Subhedar)