Takeover target Hathor Exploration Inc. is considering a wide range of options in reaction to a hostile bid by uranium giant Cameco Corp., including the sale of its Roughrider deposit in Saskatchewan that it says has attracted interest around the world.
Hathor's flagship deposit in the mineral-rich Athabasca Basin in northern Saskatchewan has garnered attention from both mining and energy companies for years, the company said, some of which have signed confidentiality agreements.
"There are many different scenarios that could play out," Hathor president Mike Gunning said at the company's annual meeting in Vancouver on Wednesday.
Cameco made a hostile $520-million all-cash offer for Hathor last month, valuing the uranium explorer at $3.75 per share amid depressed uranium prices in the wake of Japan's nuclear disaster. Hathor shares have since traded at more than the offer price, closing Wednesday at $4.19 on the Toronto Stock Exchange, as investors anticipate other offers could come forward.
Hathor said it's reviewing Cameco's offer, along with other possibilities, and is urging shareholders to take no action until it makes a recommendation, which is expected next week.
Mr. Gunning said the company has been on the radar of both uranium producers and state-owned energy companies as countries in Asia and Europe look to secure supply of the nuclear power ingredient.
"This offer by Cameco has simply changed the dynamic. It has not introduced anything new," Mr. Gunning said in an interview.
Cameco CEO Tim Gitzel said he's not surprised other companies are interested in Hathor, but maintains Cameco's offer is fair and, as a neighbouring miner, offers advantages others can't. He also said Cameco is particularly interested in the Roughrider deposit but "our preference is for the company."