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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 Under
the Securities Exchange Act of 1934
For the month of August, 2007
Cameco Corporation
(Commission file No. 1-14228)
2121 11th Street West
Saskatoon, Saskatchewan, Canada S7M 1J3
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b):
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Exhibit Index
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Exhibit No. |
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Description |
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Page No. |
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1.
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Press Release dated
August 30, 2007
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3 5 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Date: August 30, 2007 |
Cameco Corporation
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By: |
"Gary M.S. Chad"
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Gary M.S. Chad, Q.C. |
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Senior Vice-President, Governance,
Legal and Regulatory Affairs, and
Corporate Secretary |
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TSX: CCO
NTSE: CCJ
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website: cameco.com
currency: Cdn |
2121 11th Street West, Saskatoon, Saskatchewan, S7M 1J3 Canada
Tel: (306) 956-6200 Fax: (306) 956-6201
Cameco and Kyrgyz Government Reach Agreement
Saskatoon, Saskatchewan, Canada, August 30, 2007 . . . . . . . . . . . . . . .
Cameco Corporation announced today the company and Centerra Gold Inc. have each signed binding
agreements with the Kyrgyz government. These agreements are expected to provide additional business
certainty for mining operations at Kumtor, further align the parties business interests and
support Centerras growth plans.
Cameco owns 53% of Centerra while Kyrgyzaltyn owns 16%. Cameco and Kyrgyzaltyn JSC, a joint stock
company owned by the Kyrgyz government, were partners in the gold company that developed and began
production at the Kumtor gold mine, which subsequently became part of Centerra.
Under the terms of the agreements, the Kyrgyz government and Kyrgyzaltyn agree to support
Centerras continuing long-term development of the Kumtor project and agree to facilitate eventual
divestiture of Camecos interest in Centerra. In return, the Kyrgyz government will receive 32.3
million shares (22.3 million net from Cameco and 10 million treasury shares from Centerra) upon
closing of the definitive legal agreements resulting from the agreements signed today. Of these, 15
million shares will be received immediately and 17.3 million shares will be held in escrow until
the earliest of:
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Camecos holdings of Centerras issued and outstanding shares fall
below 17.3 million shares, |
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the volume weighted average closing price of Centerras shares on the
TSX being no less than $13.30 for at least 7 business days, or |
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the fourth anniversary of the closing. |
After the transfer of all the shares is completed, Cameco will own about 41% of Centerra, the
Kyrgyz Republic will own about 29% and the public shareholders will own the remaining 30%. When
Camecos ownership falls below 50%, we will no longer consolidate Centerras financial results and
will instead account for Centerra using the equity method. Also as a consequence of the share
transfer, Cameco will record a one-time, after-tax loss of about $120 million at closing.
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These agreements provide a platform for a predictable and stable business climate for the Kumtor
gold mine, said Jerry Grandey, Camecos president and CEO. We will work closely with Centerra and
the Kyrgyz government to enable Centerra to successfully pursue its mandate.
Centerras agreement provides for the Kyrgyz governments full support of Centerras operations and
significantly enlarges its existing mine concession area by over 25,000 hectares to include all
territory covered by the current exploration licence. In addition, Centerras agreement provides
for replacement of the current tax regime with a simplified, new tax rate for the Kumtor operation
applied to gross revenue. The new tax rate for the Kumtor project will be 11% in 2008, 12% in 2009
and 13% thereafter.
The signed binding agreements provide the framework for definitive agreements to be entered into
upon the receipt of approval by the Parliament of Kyrgyz Republic that resumes sitting on September
3. The Kyrgyz government intends to present the documents for Parliamentary approval in September.
While parliamentary approval is not assured, the Kyrgyz government intends to present the documents
and make a concerted effort to obtain parliamentary approval.
Cameco expects the two agreements to be finalized in about two months subject to the appropriate
approvals by Camecos board of directors, Centerras board of directors and the Kyrgyz government.
Cameco, with its head office in Saskatoon, Saskatchewan, is the worlds largest uranium producer.
The companys uranium products are used to generate electricity in nuclear energy plants around the
world, providing one of the cleanest sources of energy available today. Camecos shares trade on
the Toronto and New York stock exchanges.
Statements contained in this news release, which are not historical facts, are forward-looking
statements that involve risks, uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied by such forward-looking statements. Factors that
could cause such differences, without limiting the generality of the following, include: the impact
of the sales volume of fuel fabrication services, uranium, conversion services, electricity
generated and gold; volatility and sensitivity to market prices for uranium, conversion services,
electricity in Ontario and gold; competition; the impact of change in foreign currency exchange
rates and interest rates; imprecision in decommissioning, reclamation, reserve and tax estimates;
environmental and safety risks including increased regulatory burdens and long-term waste disposal;
unexpected geological or hydrological conditions; adverse mining conditions; political risks
arising from operating in certain developing countries; terrorism; sabotage; a possible
deterioration in political support for nuclear energy; changes in government regulations and
policies, including tax and trade laws and policies; demand for nuclear power; replacement of
production; failure to obtain or maintain necessary permits and approvals from government
authorities; legislative and regulatory initiatives regarding deregulation, regulation or
restructuring of the electric utility industry in Ontario; Ontario electricity rate regulations;
natural phenomena including inclement weather conditions, fire, flood, underground floods,
earthquakes, pit wall failure and cave-ins; ability to maintain and further improve positive labour
relations; strikes or lockouts; operating performance, disruption in the operation of, and
life of the companys and customers facilities; decrease in electrical production due to planned
outages extending beyond their scheduled periods or unplanned outages; success of planned
development projects; and other development and operating risks.
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Although Cameco believes that the assumptions inherent in the forward-looking statements are
reasonable, undue reliance should not be placed on these statements, which only apply as of the
date of this report. Cameco disclaims any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information, future events or otherwise.
- End -
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Investor and media inquiries:
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Alice Wong
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(306) 956-6337 |
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Investor inquiries:
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Bob Lillie
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(306) 956-6639 |
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Media inquiries:
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Lyle Krahn
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(306) 956-6316 |