Cameco Corporation completes C$908 million secondary bought deal offering of Centerra Gold Inc.'s common shares

Date Closed: 12/30/2009

Value: C$908 million

On December 30, 2009, Cameco Corporation completed a secondary public offering of 88,618,472 common shares of Centerra Gold Inc. for $10.25 per share. Cameco raised a total of approximately $908 million under the offering.

As a result of the closing of the public offering, and the completion of a related transfer of Centerra common shares to Kyrgyzaltyn JSC, Cameco has disposed of its entire interest in Centerra. This brings to a close Cameco's long involvement with the Kumtor Gold Mine, Centerra's principal producing property, located in the Kyrgyz Republic. Cameco was one of the first Western-based mining companies to become involved in mining projects located in countries of the former Soviet Union, and was responsible for developing Kumtor as a mine producing in the range of [500,000 to 600,000] ounces of gold per year. Cameco disposed of an initial interest in Centerra upon Centerra's IPO in 2004. Following the most recent offering, Centerra is now independent of Cameco.

The common shares were sold by way of a bought deal through a syndicate of underwriters co-led by CIBC World Markets Inc. and RBC Dominion Securities Inc. and that included BMO Nesbitt Burns Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Morgan Stanley Canada Limited, National Bank Financial Inc., TD Securities Inc., UBS Securities Canada Inc., BNP Paribas (Canada) Securities Inc., Canaccord Financial Ltd., Desjardins Securities Inc., GMP Securities L.P., Macquarie Capital Markets Canada Ltd. and Salman Partners Inc.

The underwriters were represented in Canada by BLG with a team led by Paul Mingay and that included Fred Pletcher, Dyana McLellan, Shannon Webber, Shaunik Katyal and Vanessa McMinn (corporate and securities), Rick Coburn and Christina Vechsler (environmental) and Larissa Tkachenko (tax).