Denison To Acquire 50% Of JCU (Canada) Exploration From UEX For C$20.5 Mln

(RTTNews) - Denison Mines Corp. (DNN, DML.TO), a uranium exploration and development company, announced Tuesday that it has entered into a binding agreement to acquire 50% ownership of JCU (Canada) Exploration Company, Limited from UEX Corp. for cash consideration of C$20.5 million.

The deal follows UEX's expected acquisition of JCU from Overseas Uranium Resources Development Co., Ltd. or OURD.

UEX has entered into an amended purchase agreement with OURD to buy 100% ownership of JCU, a wholly owned subsidiary of OURD, for cash consideration of C$41 million.

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, a 33.8123% interest in the Kiggavik project, and a 34.4508% interest in the Christie Lake project.

David Cates, President and CEO, said, "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 OURD Agreement, and the completion of the JCU acquisition by UEX pursuant thereto, remains subject to approval at a meeting of the shareholders of OURD, which is expected to occur in Tokyo on June 18.

If the shareholders of OURD approve the OURD Agreement, the transaction is expected to close on or before August 3, 2021.

Denison's previously announced offer to buy JCU from OURD has been withdrawn.