Cameco Signs MOU to Improve Cigar Lake Project Economics

Cameco (TSX:CCO,NYSE:CCJ) announced that it has signed a non-binding memorandum of understanding with its JV partners to mill all Cigar Lake ore at the McClean Lake mill.

As quoted in the press release:

The new milling arrangement is expected to result in a significant reduction in the operating cost of the Cigar Lake project, which is 50% owned and operated by Cameco. The other Cigar Lake joint venture partners are AREVA Resources Canada Inc. (37%), Idemitsu Resources Canada Inc. (8%) and Tepco Resources Inc (5%).

Binding agreements with the owners of the Cigar Lake project and McClean Lake mill are required to proceed with the new milling arrangements. Cameco expects these agreements to be concluded before November 30, 2011.

Click here to read the Cameco Corp. (TSX:CCO,NYSE:CCJ) press release.