Denison Mines Offers To Acquire JCU Canada For $40.5 Million

Denison Mines Corp. (TSX: DML) announced today that it has sent a binding offer to  Overseas Uranium Resources Development Co., Ltd. to acquire its wholly-owned subsidiary, JCU (Canada) Exploration Company, Limited. Denison’s offer seeks 100% ownership of JCU.

As part of the offer, Denison’s consideration for the acquisition includes cash payments of up to $40.5 million and absorbing JCU’s liabilities owed to Japan Atomic Energy Agency. The cash payment consists of a $10.0 million refundable deposit upon signing of the agreement, a $28.0 million payment upon closing, and a $2.5 million payment within 45 days of the closing date. The latter is subject to adjustment based on JCU’s working capital on the closing date.

Denison set no due diligence on JCU’s assets and no conditions in obtaining the necessary funding for the acquisition since the company reports it has sufficient cash to fulfill the set purchase price. The transaction however is conditional on the termination of an existing definitive purchase agreement with UEX Corporation (TSX: UEX) between UEX and Overseas Uranium.

Further, Denison commits to the parent company that JCU will be maintained as a corporate subsidiary following the acquisition.

Currently, JCU holds a portfolio of joint venture interests in Canada, including a 10% interest in Denison’s 90%-owned Wheeler River uranium project.

Denison Mines Corp. last traded at $1.41 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Steadright To Conduct Multi-Phased Exploration At Historic Goundafa Polymetallic Mine

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Related News

Cameco: Canaccord Refers To Firm As “Go-To” Name For Uranium Exposure

On February 9th, Cameco (TSX: CCO) reported its full-year 2021 financial results. The company reported...

Saturday, February 12, 2022, 02:03:00 PM

Uranium Energy Closes On Purchase Of UEX Corp

It appears the battle over UEX Corp (TSX: EUX) between Uranium Energy (NYSE: UEC) and...

Monday, August 22, 2022, 08:44:28 AM

Denison Mines Records $6.8 Million In Revenue, $16.1 Million Net Loss In Q2 2022

Denison Mines Corp. (TSX: DML) shared on Thursday its Q2 2022 financial results, highlighting a...

Friday, August 5, 2022, 01:40:00 PM

Kazatomprom Cuts 2025 Uranium Production Guidance By 17% Amid Supply Chain Crisis

Kazatomprom, the world’s largest uranium producer, has cut its 2025 production guidance by 17%, signaling...

Friday, August 23, 2024, 03:10:00 PM

Energy Fuels Records $0.7 Million In Revenue, $8.0 Million Net Loss In Q3 2021

Energy Fuels Inc. (TSX: EFR) released this morning its Q3 2021 financial results, which saw...

Monday, November 1, 2021, 10:39:00 AM