As per the terms of the off-take deal, Cameco will provide up to $60m to construct a uranium extraction circuit at the site in eastern Finland.
This investment will be repaid by initial deliveries of uranium concentrates, with Cameco then buying additional material produced at Sotkamo through a second agreement that ends on 31 December 2027.
Cameco will take ownership of the uranium at the Sotkamo site and will have the sole right to market the product to its customers.
Talvivaara plans to start construction of the uranium extraction circuit in the coming months and complete it in 2012, which requires a number of permits currently being sought from Finnish regulators.
Talvivaara anticipates uranium output at Sotkamo mine to be around 900,000 pounds a year once the mine ramps up to full production that can even increase, provided, Talvivaara increases its output of nickel and zinc concentrate.
