Cosa Resources To Lead Denison's Three Uranium Projects In A New JV

(RTTNews) - Cosa Resources Corp. (COSA.V), a mineral exploration company, Wednesday announced that it has signed a deal to acquire a stake in three of Denison Mines Corp. (DNN, DML.TO) uranium exploration projects in the Eastern Athabasca Basin. The transaction is expected to close by early 2025.

The parties will form joint ventures, in which Cosa will have a 70% interest and Denison will have a 30% interest in each Project as of the closing date.

Cosa will acquire a 70% interest in Denison's fully-owned Murphy Lake North, Darby, and Packrat properties. In return, Cosa will issue about 14.2 million common shares, provide $2.25 million in deferred equity, and commit to spending $6.5 million on exploration at Murphy Lake North and Darby.

Under the agreement, Denison will sell a 70% share in each project to Cosa. The two companies will establish joint ventures for these projects after the deal is completed, with Cosa initially overseeing each one. Furthermore, Denison has promised to contribute at least C$1 million or $0.7112 million to Cosa's future equity financing. About 14.196 million common shares, or 19.95% of Cosa's total shares, upon completion of the transaction, will be issued to Denison by Cosa in exchange for this agreement.

Cosa is to appoint a technical advisor nominated by Denison for five years from the Closing Date or until all of Cosa's obligations under the Acquisition Agreement have been fulfilled.

Tuesday, COSA.V had closed 12.50% higher at $0.22. Tuesday, DNN had closed 2.16% lesser at $2.27 on the New York Stock Exchange. In the pre-market trading, DNN gained 0.87% to $2.28.