- Denison Mines (DML) has confirmed its proposal to acquire UEX Corporation (UEX)
- UEX has determined that the proposal constitutes a “Superior Proposal” pursuant to the agreement between Uranium Energy and UEX
- The proposal, contingent on a definitive agreement, would allow Denison to consolidate ownership of the Wheeler River Project and JCU (Canada) Exploration Company
- UEX and Denison are uranium exploration and development companies with interests focused on Saskatchewan’s Athabasca Basin
- UEX (UEX) is up by 6.02 per cent trading at $0.44 per share
- Denison Mines (DML) is down by 5.06 per cent trading at $1.50 per share
Denison Mines (DML) has confirmed its proposal to acquire UEX Corporation (UEX).
UEX has determined that the proposal constitutes a “Superior Proposal” as defined in the agreement between Uranium Energy and UEX.
Denison’s proposal is subject to the finalization of a definitive agreement as well as a non-disclosure agreement with regards to ongoing discussions.
Potential benefits of the acquisition include:
- Consolidating 100-per-cent ownership of the Wheeler River Project, which represents the largest undeveloped uranium project in the eastern portion of the Athabasca Basin region. Wheeler River’s pre-feasibility study suggests that its Phoenix deposit has the potential to be one of the lowest-cost uranium mining operations in the world. Denison holds a 95-per-cent interest in Wheeler River
- Consolidating 100-per-cent ownership of JCU (Canada) Exploration Company – JCU holds a portfolio of twelve uranium project joint venture interests in Canada, including 30.099 per cent in the Millennium Project (Cameco: 69.901 per cent), 33.8118 per cent in the Kiggavik Project (Orano Canada: 66.1882 per cent), and 34.4508 per cent in the Christie Lake Project (UEX: 65.5492 per cent). Denison holds a 50-per-cent interest in JCU
- UEX’s Athabasca Basin region assets are well-suited to Denison’s in-house expertise in exploration, project development, engineering, metallurgy, mining, plant operations, permitting and regulatory affairs
“We believe that an acquisition by Denison of UEX, and its assets in northern Saskatchewan, has the potential to benefit Denison shareholders – bolstering Denison’s position as a leading uranium development and exploration company,” stated David Cates, Denison’s President and CEO.
“Importantly,” he added, “an acquisition of UEX would allow Denison to consolidate 100-per-cent ownership in our flagship Wheeler River Project at an ideal time ahead of the anticipated final technical de-risking steps associated with the feasibility study in progress for the planned Phoenix In-Situ Recovery operation.”
UEX and Denison are uranium exploration and development companies with interests focused on Saskatchewan’s Athabasca Basin.
UEX (UEX) is up by 6.02 per cent trading at $0.44 per share as of 9:37 am EST.
Denison Mines (DML) is down by 5.06 per cent trading at $1.50 per share as of 9:38 am EST.