Denison Mines Corp. (TSX: DML) shared this morning that it inked a repayment schedule agreement with Uranium Industry related to the latter’s debt owed to the firm. The negotiation included an initial US$2 million debt repayment received by the firm.
In July 2020, the London Court of International Arbitration ruled in favor of Denison Mines regarding Uranium Industry’s violation of its obligations related to the former’s sale of its Mongolia assets and operations. The court ordered an arbitration award of US$10 million plus 5% annual interest due to Denison Mines.
Considering the arbitration award, interest incurred, and related fees, the total amount due to Denison Mines is US$16 million (including the initial US$2 million payment). The two companies negotiated the repayment schedule of quarterly installments and annual milestone payments until December 31, 2025.
The signed agreement also includes conditions in favor of Denison Mines due to the deferral of the arbitration award payment, including restricting Uranium Industry to take on additional debt.
Denison Mines Corp. last traded at $1.80 on the TSX.
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