March 16, 2011 / 7:06 PM / 9 years ago

Uranium One: Japan woes jeopardize Mantra takeover

* Mantra stock plunges 33 percent

* Uranium One stock off 6 percent

TORONTO, March 16 (Reuters) - Canada’s No. 2 uranium producer, Uranium One UUU.TO, said on Wednesday the nuclear crisis in Japan has put in jeopardy its ability to complete an acquisition of Mantra Resources MRU.AXMRL.TO, sending shares in the target company down 33 percent.

Uranium One, which is pursuing the all-cash A$1.2 billion ($1.18 billion) deal through its largest shareholder, Russia’s ARMZ, said it would continue discussions to seek other avenues for the transaction.

“ARMZ believes that the recent serious events at the nuclear power plant in Fukushima, Japan are likely to have a material adverse effect on the business, results of operations, assets or liabilities, financial position or prospects of Mantra,” Uranium One said in a statement.

Mantra’s Toronto-listed shares fell $2.54, or 33 percent, to C$4.45 in midafternoon trade on Wednesday.

Shares of Uranium One, which operates primarily in Kazakhstan, rose over 7 percent on open on the Toronto Stock Exchange but later fell 6.17 percent to C$3.50 per share.

$1=$0.98 Australian Reporting by Pav Jordan; Editing by Steve Orlofsky

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