SASKATOON - Cameco (TSX:CCO.TO - News) says it has entered into an agreement with AREVA Resources Canada Inc. to acquire the company's stake in the northern Saskatchewan-based Millennium project for $150 million.

The acquisition would make Cameco the majority holder in the proposed uranium mine.

AREVA holds a 27.94 per cent interest in the project, which is one of 12 mineral claims held by the Cree Lake Extension Joint Venture.

Cameco currently owns 41.96 per cent of the project and JCU Exploration Company Ltd owns the remaining 30.1 per cent.

If JCU exercises its right of refusal, it will acquire 11.67 per cent of the project and Cameco will get 16.27 per cent, bringing its stake to 58.23 per cent.

If JCU does not exercise its rights, then Cameco will acquire the entire 27.94 per cent from AREVA, increasing its ownership interest to 69.9 per cent.

Under the agreement announced, the Millennium project will be designated a separate project area under the Cree Lake venture.

The transaction is expected to close no later than June 6.

"This agreement gives Cameco majority ownership of Millennium and further strengthens our base of uranium assets in the Athabasca Basin consistent with our growth strategy," Cameco president and CEO Tim Gitzel said in a release.