Russia's ARMZ to bid for Canada's Khan Resources

MOSCOW (Reuters) - AtomRedMetZoloto (ARMZ), a mining unit of Russia's state-owned uranium firm Rosatom, said on Monday it would bid for Canadian miner Khan Resources Inc KRI.TO, which has assets in Mongolia.

ARMZ’s CEO Vadim Zhivov told a news briefing it will use its own resources for the purchase.

Khan Resources said on Friday it had been informed that ARMZ would make an unsolicited offer to purchase all shares of the Toronto-based miner for 0.65 Canadian dollars ($0.610) per share.

Khan Resources’s activities are focused on the Dornod area in northeastern Mongolia, the site of a former Russian open-pit uranium mine.

The company holds interests in the main Dornod property, licensed for mining, and in the additional Dornod property, licensed for exploration.

($1=1.066 Canadian Dollar)

Reporting by Robin Paxton, writing by Aleksandras Budrys; Editing by Hans Peters