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Denison Mines Announces Agreement to Acquire 50% of JCU (Canada) Exploration Company, Limited from UEX Corporation for $20.5 Million
TORONTO, June 15, 2021 /CNW/ - Denison Mines Corp. ("Denison" or the "Company") (TSX: DML) (NYSE American: DNN) is pleased to announce that it has entered into
About this update from Denison Mines Corp.
[{"type":"text","content":" TORONTO, June 15, 2021 /CNW/ - Denison Mines Corp. (\"Denison\" or the \"Company\") (TSX: DML) (NYSE American: DNN) is pleased to announce that it has entered into a binding agreement (the \"Agreement\") to acquire 50% ownership of JCU (Canada) Exploration Company, Limited (\"JCU\") from UEX Corporation (\"UEX\"), for cash consideration of $20.5 million, following UEX's expected acquisition of JCU from Overseas Uranium Resources Development Co., Ltd. (\"OURD\"). UEX has entered into an amended purchase agreement with OURD (\"OURD Agreement\") to acquire 100% ownership of JCU, a wholly owned subsidiary of OURD, for cash consideration of $41 million (see UEX press release dated June 15, 2021). 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%). David Cates, President and CEO, stated: \"Denison welcomes this new partnership with UEX. We are pleased with the acquisition terms for this unique and valuable portfolio of strategic Canadian uranium interests, which have been meticulously accumulated by JCU over prior decades. Following this acquisition, Denison will not only increase its indirect ownership of the Company's flagship Wheeler River project, but will also expand its asset base to include additional important Canadian uranium development projects such as Millennium and Kiggavik.\" The key terms of the Agreement are outlined below: Denison agrees to provide UEX with an interest-free three-month term loan of up to $41 million (the \"Term Loan\") to facilitate UEX's payment of the $41 million purchase price to OURD for the purchase of 100% of the shares of JCU pursuant to the OURD Agreement. $20.5 million of the amount drawn under the Term Loan will be deemed repaid to Denison by UEX on the transfer of 50% of the JCU shares to Denison immediately following the closing of the OURD Agreement and the acquisition of the JCU shares by UEX. UEX may extend the Term Loan by an additional three months, in which case interest will be charged at a rate of 4% from the date of the initial advance under the Term Loan...