TORONTO, July 29, 2022 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Company”) (TSX: DML) (NYSE American: DNN) has noted the disclosure made by Uranium Energy Corp. (“UEC”) in its press release dated July 28, 2022. Denison hereby confirms that it has made a confidential proposal (an “Acquisition Proposal”) to UEX Corporation (“UEX”) to acquire all of the issued and outstanding shares of UEX. UEX reported that its Board of Directors, in consultation with its legal and financial advisors, has determined that the Acquisition Proposal constitutes a “Superior Proposal” as defined in the Arrangement Agreement between UEC and UEX dated from June 13, 2022 (“Original Agreement”). Denison understands that notice of such a decision was provided to the UEC on July 28, 2022. See the PDF version
The Non-Binding Acquisition Proposal Remains Subject to the Entering into of a Definitive Arrangement Agreement (“Definitive Agreement”) and any Transaction Discussions Remain Subject to the Terms of a Non-Disclosure Agreement (“NDA”) entered into between Denison and UEX. At this time, no definitive agreement has been reached between Denison and UEX, and entering into such an agreement would require the termination of the original agreement in accordance with its terms.
David CatesChairman and Chief Executive Officer of Denison, said: “We believe that an acquisition by Denison of UEX and its assets in the north Saskatchewanhas the potential to benefit Denison shareholders – strengthening Denison’s position as a premier uranium exploration and development company with an unwavering focus on advancing high-grade uranium deposits in the athabasca Basin region.
Importantly, an acquisition of UEX would allow Denison to consolidate 100% ownership of our flagship Wheeler River project at an ideal time before the planned final technical stages of de-risking associated with the feasibility study. underway for the planned in-situ recovery of Phoenix (“ISR” operation).”
An acquisition of UEX has the potential to provide multiple benefits to Denison shareholders:
- Consolidation of 100% ownership of Wheeler River – Wheeler River is host to the high quality Phoenix and the Gryphon uranium deposits and represents the largest undeveloped uranium project in the infrastructure-rich eastern part of the athabasca Basin region. The Company is actively advancing the Phoenix deposit, which is being proposed as a low-cost SRI mining operation, through the environmental assessment and feasibility study processes. The results of the pre-feasibility study carried out for Wheeler River suggest that Phoenix has the potential to be one of the lowest cost uranium mining operations in the world. Denison currently holds a 95% effective interest in
- Consolidation of 100% ownership of JCU (Canada) Exploration Company, Limited (“JCU“) – JCU holds a portfolio of twelve joint venture interests in uranium projects Canada, including a 30.099% interest in the Millennium project (Cameco Corporation 69.901%), a 33.8118% interest in the Kiggavik project (Orano Canada Inc. 66.1882%) and a 34.4508% interest in the Christie Lake (UEX 65.5492%). Denison currently owns a 50% interest in JCU.
- Portfolio of projects tailored to Denison’s abundant in-house expertise – Denison has a Saskatoona technical team based on extensive in-house expertise in exploration, project development, engineering, metallurgy, mining, plant operations, permitting and regulatory affairs , which is well suited to extract the maximum value possible, for our shareholders, from the uranium exploration or development assets located in athabasca Basin region.
There can be no assurance that a definitive agreement or any other agreement relating to the Acquisition Proposal will be entered into between Denison and UEX or that the Acquisition Proposal and any related transactions or any other similar transactions will be approved or completed. The Company undertakes no obligation to provide updates regarding this transaction or any other transaction, except as required by applicable law.
Denison is a uranium exploration and development company with interests focused on athabasca Northern basin region Saskatchewan, Canada. In addition to its 95% beneficial interest in the Wheeler River project, Denison’s interest in the athabasca include a 22.5% interest in the McClean Lake joint venture, which includes several uranium deposits and the McClean Lake uranium mill which is responsible for processing ore from the Cigar Lake mine under a toll milling agreement, as well as a 25.17% interest in the Midwest Main and Midwest A, and a 66.90% interest in the Tthe Heldeth Túé (“THT”, formerly J Zone) deposits and Huskie on the Waterbury Lake property. The Midwest Main, Midwest A, THT and Huskie deposits are each located within 20 kilometers of the McClean Lake mill.
Through its 50% interest in JCU, Denison holds additional interests in various uranium project joint ventures in Canada, including the Millennium Project (JCU 30.099%), the Kiggavik Project (JCU 33.8118%) and Christie Lake (JCU 34.4508%). Denison’s exploration portfolio includes other property interests covering approximately 300,000 hectares in the athabasca Basin region.
Denison also provides post-closure mine care and maintenance services through its Closed Mines group (formerly Denison Environmental Services), which manages Denison’s reclaimed mine sites in the Elliot Lake region and provides related services to certain third-party projects.
Follow Denison on Twitter: @DenisonMinesCo
Caution Regarding Forward-Looking Statements
Certain information contained in this press release constitutes “forward-looking information” within the meaning of applicable law. United States and Canadian law relating to the business, operations and financial performance and condition of Denison.
Generally, these forward-looking statements can be identified by the use of forward-looking words such as “plans”, “expects”, “budget”, “expected”, “estimates”, “expects”, “has intention’, ‘anticipates’ ‘, or ‘believes’, or negative forms and/or variations of these words and phrases, or states that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘might ‘ or ‘will be taken’, ‘occur’, ‘be achieved’ or ‘has the potential to’.
In particular, this press release contains forward-looking information regarding the following: the existence and terms of the proposed acquisition, including the conditions and other rights and obligations of the parties and any potential benefits of such transaction; expectations regarding the possibility of entering into a definitive agreement and/or entering into a transaction pursuant thereto; and expectations regarding its interests in the joint venture and the continuity of its agreements with its partners.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, Denison’s level of activity, performance or achievements as being materially different from those expressed or implied by such forward-looking statements. For example, the terms of the transactions may not be satisfied or the parties may negotiate terms materially different from those disclosed herein. Denison believes that the expectations reflected in such forward-looking information are reasonable and no assurance can be given that such expectations will prove to be correct and actual results may differ materially from those anticipated in such forward-looking information. For a discussion of the risks and other factors that could affect forward-looking events, please refer to the factors discussed in the Annual Information Form dated March 25, 2022 under “Risk Factors”. These factors are not and should not be construed as exhaustive.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and assumptions made therein speak only as of the date of this press release. Denison undertakes no obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in Denison’s expectations, except as otherwise required by applicable law. .
Show original content to download multimedia:https://www.prnewswire.com/news-releases/denison-confirms-superior-proposal-for-uex-corporation-301595990.html
SOURCE Denison Mines Corp.