Denison Mines Corp (NYSEAMERICAN: DNN) is satisfied to announce that it has arrived into an obligatory contract to obtain 50% possession of JCU (Canada) Exploration Company, Limited (“JCU”) from UEX Corporation (“UEX”), for cash consequence of $20.5 million, resulting UEX’s anticipated purchase of JCU from Overseas Uranium Resources Development Co., Ltd. (“OURD”). The company shares were trading poorer by Tuesday morning, with the stock falling -3.65% in premarket exchange to 1.32.
UEX has arrived at an altered acquisition contract with OURD to obtain 100% proprietorship of JCU, an entirely maintained subsidiary of OURD, for money consideration of $41 million.
David Cates, President, and CEO, Denison Mines Corp, stated: “Denison welcomes this new business with UEX. We are satisfied with the purchase stipulations for this exclusive and valued collection of planned Canadian uranium interests, which have been methodically accrued by JCU over prior decades. Subsequent this purchase, Denison will not only upsurge its incidental possession of the company’s prize Wheeler River scheme, but will also enlarge its asset base to embrace added important Canadian uranium development projects such as Millennium and Kiggavik.”
The main provisions of the contract are delineated below:
- Denison settles to offer UEX an interest-free three-month term advance of up to $41 million to enable UEX’s disbursement of the $41 million acquisition price to OURD to acquire 100% of the shares of JCU pursuant to the OURD Contract.
- In addition, $20.5 million of the sum drawn under the Term Loan will be reimbursed by UEX on the handover of 50% of the JCU shares to Denison, directly ensuing the concluding of the OURD Contract attainment of the JCU shares by UEX.
- UEX may lengthen the Term Loan by an extra three months, in which case interest will be charged at a rate of 4% from the day of the first advance under the Term Loan until maturity.
- The Term Loan is subject to certain habitual expressions and settings and covers standard proceedings of failure to pay that defend Denison.
- Denison and UEX agree to enter into a stockholders’ contract leading the association of Denison and UEX with detail to the future organization of JCU.
- The Stockholders’ Arrangement shall comprise various necessities regarding upcoming backing and thinning, as well as resolution of impasse circumstances and defenses of minority welfares in relation to exact business matters that will necessitate 66.67% or undisputed backing from then JCU stockholders.
- Should the OURD Agreement be ended, each of Denison and UEX have decided to offer the other party the opening to contribute on a 50/50 basis in the following bids made in relation to an alternate acquirement of JCU.
- UEX and Denison have certain cessation rights, including those in favor of Denison, if the OURD Contract is not finished by September 30, 2021.
Denison Mines Corp (NYSEAMERICAN: DNN) is a uranium survey and enlargement company with welfares absorbed in the Athabasca Basin region of northern Saskatchewan, Canada.