TORONTO (Reuters) - Cameco Corp (CCO.TO) commenced its C$520 million ($531 million) hostile bid for Hathor Exploration HAT.TO on Tuesday, as Canada’s top uranium producer looks to expand its output in the Athabasca basin.
Cameco said on Friday that it was planning the hostile bid after talks aimed at a friendly deal failed.
The bid, an all-cash offer of C$3.75 per share, represents a 40 percent premium on Hathor’s closing price of C$2.67 on Thursday.
At stake is the Roughrider deposit, an exploration stage uranium project near Cameco’s Rabbit Lake mill in Northern Saskatchewan.
Hathor on Monday urged shareholders to wait for the official bid, and to not act until it had reviewed the offer and responded.
Cameco said its offer will expire on October 31.
CIBC World Markets is advising Cameco on the proposed takeover, while Osler, Hoskin & Harcourt LLP is the company’s legal counsel.
Cameco shares slipped 0.23 percent to C$22.11 on the Toronto Stock Exchange, while Hathor’s shares were steady at C$3.95.
Reporting by Julie Gordon; editing by Janet Guttsman