Russian state-owned uranium producer JSC Atomredmetzoloto and its affiliate Effective Energy (termed ARMZ) signed an agreement to purchase the remaining stake in Canada-based Uranium One for C$1.3bn ($1.32bn).

ARMZ currently owns 51.4% interest in the Canadian uranium miner. Following the completion of this transaction, Uranium One would become private.

According to the terms of the agreement, ARMZ will acquire the remaining stake in Uranium One for CDN$2.86 ($3) a share, which is a 32% premium to the company’s 20-day volume weighted average price ending 11 January 2013.

Uranium One’s board of directors unanimously approved the offer, determining that it is in the best interests of the company.

ARMZ board chairman Vadim Jivov stated, "Despite the uranium industry’s currently challenging outlook, ARMZ will continue with its strategy of developing Uranium One into the leading global uranium producer, which was the basis of our original investment in the Company."

The transaction is subject to the approval of Uranium One shareholders and regulatory authorities, and is expected to close in the second quarter of 2013.