Canada“s Khan Resources Inc has agreed to be bought by Beijing-based CNNC Overseas Uranium Holding Ltd in a deal that values the uranium explorer at USD52.9 million and gives the Chinese firm access to the Dornod field in Mongolia. Khan Resources said CNNC, a subsidiary of China National Nuclear Corp, will pay 96 Canadian cents per share. In December, Khan Resources had rejected an offer of 65 Canadian cents a share from Russian state uranium miner ARMZ, or AtomRedMetZoloto, which owns a 21 percent stake in Dornod. 

Khan Resources, which holds a 58 percent stake in Dornod, has been looking to renew its licenses for the project, following the Mongolian Government”s decision to regulate uranium mining. Dornod has uranium reserves of about 22,000 tons and this amount could be significantly increased with further exploration.

The company said CNNC has the right to match any superior offer made by another bidder and will be paid a termination fee of CAD1.6 million if the deal falls through in certain circumstances.