Cameco Corporation (NYSE: CCJ) (TSE: CCO) will increase its ownership stake in Saskatchewan’s Cigar Lake uranium mine after acquiring part of a joint venture interest previously held by TEPCO Resources.
The company announced Monday that it and French nuclear fuel producer Orano will purchase TEPCO’s participating 5 per cent interest in the operation. Cameco will acquire an additional 2.871 per cent stake, while Orano will receive 2.129 per cent.
Consequently, Cameco’s ownership in Cigar Lake will rise to 57.418 per cent following the transaction. Orano’s share will increase to 42.582 per cent.
Cigar Lake sits approximately 660 kilometres north of Saskatoon and ranks among the world’s highest-grade uranium mines. Cameco operates the site and has partnered with Orano there for decades. Additionally, the companies jointly own interests in the McArthur River mine and the Key Lake mill, two other major Saskatchewan uranium assets.
TEPCO, a subsidiary of Japanese utility company Tokyo Electric Power Company, joined the venture later with a minority ownership position.
Cameco said it paid CAD$115.75 million for its portion of the acquisition. Meanwhile, Orano did not disclose the value of its purchase. The companies expect the transaction to close during the third quarter of 2026.
Chief executive Tim Gitzel said the acquisition reflects Cameco’s continued focus on securing long-life uranium assets. He added that Cigar Lake remains important as countries pursue plans to expand nuclear power generation and strengthen energy security.
Since entering production in 2014, Cigar Lake has produced 174.5 million pounds of uranium concentrate, known as U3O8. Furthermore, the mine still contains approximately 172.4 million pounds of proven and probable reserves.
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Cameco expects Cigar Lake to produce 18 million pounds this year
The operation also hosts measured and indicated resources of 26.3 million pounds of U3O8. In addition, inferred resources total another 20 million pounds.
Cameco expects Cigar Lake to produce between 17.5 million and 18 million pounds of U3O8 this year on a 100 per cent basis. The company is continuing mining and development work in the currently active production zone.
Additionally, Cameco is pursuing initiatives aimed at extending the mine’s operating life to 2036.
Shares of Cameco slipped about 1 per cent in early New York trading on Monday. The company currently carries a market capitalization of approximately CAD$47.6 billion.
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