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Denison Mines Acquires 50% of JCU (Canada) Exploration Company, Limited and Increases Effective Interest in Wheeler River to 95%
TORONTO, Aug. 3, 2021 /CNW/ - Denison Mines Corp. ("Denison" or the "Company") (TSX: DML) (NYSE American: DNN) is pleased to announce the completion of its acqu
About this update from Denison Mines Corp.
[{"type":"text","content":" TORONTO, Aug. 3, 2021 /CNW/ - Denison Mines Corp. (\"Denison\" or the \"Company\") (TSX: DML) (NYSE American: DNN) is pleased to announce the completion of its acquisition of 50% ownership of JCU (Canada) Exploration Company, Limited (\"JCU\"), from UEX Corporation (\"UEX\"), for cash consideration of $20.5 million. Denison's acquisition of a 50% interest in JCU occurred immediately following UEX's acquisition of all the outstanding shares of JCU from Overseas Uranium Resources Development Co., Ltd. (\"OURD\") for cash consideration of $41 million. David Cates, President and CEO of Denison, commented, \"Denison is pleased to have acquired a 50% interest in JCU – which holds a unique and valuable portfolio of strategic Canadian uranium interests, including a 10% interest in Denison's flagship Wheeler River project. We believe there is considerable value in JCU's portfolio of assets and that this transaction is highly accretive for Denison shareholders. In addition to consolidating an effective 95% interest in Wheeler River, this acquisition expands Denison's leading Athabasca Basin development portfolio to include additional important Canadian uranium development projects such as Millennium and Kiggavik.\" JCU's Project Portfolio JCU holds a portfolio of twelve uranium project joint venture interests in Canada, including a 10% interest in Denison's 90% owned Wheeler River project, a 30.099% interest in the Millennium project (Cameco Corporation 69.901%), a 33.8123% interest in the Kiggavik project (Orano Canada Inc. 66.1877%), and a 34.4508% interest in the Christie Lake project (UEX 65.5492%). Term Loan to UEX Pursuant to Denison's agreement with UEX (see press release dated June 15, 2021), Denison provided UEX with an interest-free 90-day term loan of $40.95 million (the \"Term Loan\") to facilitate UEX's purchase of JCU from OURD. On the transfer of 50% of the shares in JCU from UEX to Denison, $20.5 million of the amount drawn under the Term Loan was deemed repaid by UEX. Accordingly, UEX has currently drawn $20.45 million under the Term Loan, which is due to Denison by November 1, 2021. UEX may extend the Term Loan maturity by an additional 90 days (to January 30, 2022), in which case interest will be charged at a rate of 4% from the date of the initial advance under the Term Loan (August 3...