Canada's Khan Resources Inc said on February 1st the company has entered into a definitive agreement to sell all its outstanding common shares for C$0.96 per share in cash to CNNC Overseas Uranium Holding Ltd, giving CNNC access to the Dornod uranium field in Mongolia.
The deal values the uranium explorer at C$56.5 million ($52.9 million), according to a press release on Khan Resource's website.
"CNNC brings a lot to the table, with its deep expertise in nuclear energy, financial strength and strong political ties with Mongolia," said Martin Quick, president and chief executive officer of Khan, in the statement.
Dornod has uranium reserves of about 22,000 tons and the amount could be significantly increased with further exploration. Mongolia's uranium deposits are currently ranked 15th largest in the world.

The acquisition, which still needs approval in Canada and China and by Khan's shareholders, followed a ceremony yester-day marking China Guangdong Nuclear Power Corporation's takeover of Australian uranium explorer Energy Metals, the Xinhua News Agency reported.
Experts said the nuclear power sector is expected to develop fast as China accelerates its use.
Source: Business.globaltimes.cn