Tokyo Electric Power Company (TEPCO), Toshiba Corporation, and the Japan Bank for International Cooperation (JBIC) have signed a new agreement with Canada’s Uranium One. It will end their investment in the company, while securing long-term uranium purchase rights.

In February 2009, the three Japanese companies signed a strategic relationship agreement with U1, under which they agreed to subscribe to U1’s issue of 117 million new common shares for allocation to third parties. In December 2009, the Japanese companies agreed to take up U1’s convertible debentures instead of common shares, and that transaction was completed in January 2010.

Under the new agreement the Japanese companies will receive purchase rights for up to 2.5 million pounds of natural uranium (U3O8) a year from 2014 to 2025, against the current right to up to 20% of U1’s annual attributable production.

In return U1 will buy back the convertible debentures for C$271.79 million – equal to 101% of the C$269.1 million principal amount originally paid by the three Japanese companies.

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