Shares of Centerra Gold Inc. slid more than nine per cent Monday after a report that uranium giant Cameco Corp. is planning to sell its stake in the gold miner through a public stock offering.

The Globe and Mail reported that Cameco, which currently holds a 49 per cent stake in Centerra, is hoping to raise more than $600 million through the sale of Centerra shares.

3-month TSX chart for Centerra Gold Centerra shares closed down 65 cents to $6.51 on the Toronto Stock Exchange.

Cameco, which spun off Centerra in 2004, has made no secret of its intentions to eventually get out of the gold mining business.

Cameco spokesman Lyle Krahn wouldn't confirm or deny the newspaper report, but said any decision would be announced by news release.

"We plan to sell our shares in Centerra when the opportunity is right for us," Krahn said.

3-month TSX chart for Cameco An important impediment to any sale was cleared in late April when Centerra announced that it had reached an agreement with the government of Kyrgyzstan, resolving years of uncertainty over ownership of the Kumtor gold mine.

Under the deal, which has not yet been finalized, Kyrgyzstan will get one-third ownership in Centerra in return for a new tax regime and additional land rights.

Cameco would own 37.8 per cent of Centerra and other shareholders would own 29.2 per cent.

Krahn said this agreement helped move the sale process along.

"Part of our agreement with the Kyrgyz government that we announced April 24 was to move in that direction, so certainly it's no surprise that we're moving in this direction. It's been part of our strategy all along," he said.

"We want to focus on the nuclear business. That's where our best assets are and where we see the most opportunity for the future of the company."

Cameco shares closed down eight cents at $30.20 on the TSX.