Cameco (NYSE:CCJ) Lands Uranium Deal with Talvivaara Mining (LSE:TALV)

Finnish miner Talvivaara Mining (LSE:TALV) has signed an agreement with Cameco (NYSE:CCJ) to produce uranium as a by-product of nickel mining at its Sotkamo mine in Finland.

Terms are Cameco will invest 45 million euros to build an uranium extraction circuit at the mine. Once Cameco is paid back, they'll acquire all the uranium produced at the mine through 2027.

Estimated uranium produced at the mine on an annual basis is 350 tons, which equates to a yield of about 410 tons of the intermediate form of uranium.

It wasn't clear if Cameco, which already provides uranium for the generation of electricity in Finland, will resell to that market.

Cameco closed Tuesday at $41.06, down $0.33, or 0.80 percent. Talvivaara closed in London at $606.00, gaining $14.00, or 2.36 percent.