HONG KONG, Jan 10 (Reuters) - Chinese steelmaker Sinosteel Corp has signed a memorandum of understanding with small Canadian explorer Ditem Explorations that could lead to it taking an equity stake in the firm.
Ditem said it had signed the deal with Sinosteel last month, providing the groundwork for exploration of its uranium properties and new properties in the Athabasca basin.
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Uranium acquistions are high on China's wishlist, and prices UX-U308-SPT have also gained from global demand, mine disruptions and falling inventories. The price hit a record high of $136 per pound last year and has since fallen back to $90, still more than 12 times its price of around $7 in 2000.
The deal with Ditem comes almost a year after Sinosteel secured China's first foothold in Australia's uranium market by sealing a joint venture deal with PepinNini Minerals Ltd.
http://www.reuters.com/article/mergersNews/idUSHKG28147520080110