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Wednesday, March 16, 2011

Uranium One: Japan woes jeopardize Mantra takeover, (TSE: UUU), (MRU), (TSE: MRL)

Canada's No. 2 uranium producer, Uranium One (UUU.TO), said on Wednesday the nuclear crisis in Japan has put in jeopardy its ability to complete an acquisition of Mantra Resources (MRU.AX)(MRL.TO), sending shares in the target company down 33 percent. Uranium One, which is pursuing the all-cash A$1.2 billion ($1.18 billion) deal through its largest shareholder, Russia's ARMZ, said it would continue discussions to seek other avenues for the transaction. "ARMZ believes that the recent serious events at the nuclear power plant in Fukushima, Japan are likely to have a material adverse effect on the business, results of operations, assets or liabilities, financial position or prospects of Mantra," Uranium One said in a statement.