Cameco Corp. (TSE: CCO) (NYSE: CCJ) and private uranium producer Orano Canada have agreed to acquire a five per cent participating interest in the Cigar Lake Joint Venture from TEPCO Resources Inc., increasing their ownership stakes in one of the world’s highest-grade uranium mines.
The companies announced the transaction on Monday, with Cameco purchasing an additional 2.871 per cent interest and Orano acquiring 2.129 per cent. Consequently, Cameco’s ownership stake in the northern Saskatchewan operation will rise to 57.418 per cent, while Orano’s share will increase to 42.582 per cent.
Cameco will pay approximately CAD$115.75 million for its portion of the acquisition. The deal remains subject to regulatory approvals and customary closing conditions. Additionally, the companies expect the transaction to close during the third quarter of 2026.
Chief executive officer Tim Gitzel described Cigar Lake as one of the world’s premier uranium mines. He said the operation consistently produces exceptionally high-grade ore through a safe and cost-effective mining process.
“Increasing our ownership in this world-class, tier-one asset further demonstrates our commitment to our strategy, with scarce, licensed, permitted assets like Cigar Lake playing an essential role in fueling global ambitions to expand nuclear energy generation,” said Gitzel.
Gitzel also credited neighbouring Indigenous communities for supporting the mine’s success. He said local partnerships continue to provide important workforce and supply chain contributions to the operation.
Cigar Lake contains proven and probable reserves estimated at 172.4 million pounds of uranium oxide, known as U3O8, on a 100 per cent basis as of Dec. 31, 2025. In addition, the deposit hosts measured and indicated resources of approximately 26.3 million pounds and inferred resources of 20 million pounds.
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Acquisition a result of optimism around uranium and nuclear
The mine has produced roughly 174.5 million packaged pounds of U3O8 since commercial production began in 2014. Meanwhile, Cameco expects Cigar Lake to produce between 17.5 million and 18 million pounds of uranium concentrate during 2026 on a 100 per cent basis.
The acquisition also reflects broader optimism surrounding the uranium sector.
As countries seek to expand nuclear generating capacity and strengthen energy security, industry participants have renewed their focus on securing long-term uranium supplies from established mining jurisdictions.
Meanwhile, the acquisition comes amid improving sentiment across the uranium sector. Governments in North America, Europe and Asia have increasingly embraced nuclear power as a reliable source of low-carbon electricity. Additionally, growing electricity demand from artificial intelligence applications and data centres has strengthened the outlook for nuclear generation.
According to a report from the World Nuclear Association, investor interest has followed those trends. Although uranium prices have pulled back from recent highs, they remain well above levels seen through much of the previous decade. Consequently, many investors have shifted their focus toward established producers and advanced development projects.
Market participants have also expressed concern about future uranium supply. New uranium mines often require years of permitting, financing and construction before reaching production. Furthermore, several industry groups expect uranium demand to grow as countries extend reactor lifespans and bring new facilities online.
That dynamic has increased the value of operating assets such as Cigar Lake. Producers with existing infrastructure and regulatory approvals can respond more quickly to rising demand than companies pursuing greenfield developments. As a result, ownership stakes in large producing uranium mines have become increasingly attractive to both operators and investors.
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