Denison Mines Options Three Uranium Properties To Cosa Resources

Denison Mines (TSX: DML) is offloading certain of its exploration properties in the Athabasca Basin of Saskatchewan. The firm this morning indicated it has optioned out three properties to Cosa Resources (TSXV: COSA) under an arrangement that will see joint ventures formed for the claims.

Properties to be optioned out include Murphy Lake North, Darby, and Packrat, all of which Cosa will acquire a 70% interest in. Cosa is to become the operator of each of the three projects, with Denison retaining a 30% interest in each.

“All three projects offer tremendous upside potential for our shareholders. Most notably, Murphy Lake North is within four kilometres of and on trend with IsoEnergy’s Hurricane Deposit – discovered in 2018 by Cosa’s management team and currently the highest grade Indicated Mineral Resource for uranium on the planet at a staggering average grade of 34.5% U3O8. Cosa views this strategic collaboration with Denison as mutually beneficial, allowing Cosa to increase discovery potential while offering Denison exposure to Cosa’s exploration success,” commented Keith Bodnarchuk, CEO of Cosa.

Consideration for the properties is to amount to $14.2 million in Cosa common shares, $2.25 million in deferred equity consideration, and exploration commitments of $6.5 million across the Darby and Murphy Lake North properties.

Exploration commitments will see Cosa be required to spend $1.5 million at Murphy Lake North by December 31, 2027, otherwise Denison’s ownership will increase to 51%, while $5.0 million in exploration must be spent at Darby by June 30, 2029.

READ: Canadian Regulators Advance Denison Mines’ Wheeler River Uranium Project

Net smelter return royalties are also in play, with 2% royalties assigned to the Darby and Packrat projects, and a 0.5% royalty assigned to Murphy Lake North. The Darby project is also subject to a buydown right, which allows Denison to reclaim up to a 60% interest under certain circumstances.

Upon closing, the transaction will result in Denison holding a 19.95% interest in Cosa Resources, becoming their largest shareholder. Denison will also have the right to appoint two directors to Cosa’s board, so long as it maintains a 10% ownership interest in Cosa.

Denison Mines last traded at $3.21 on the TSX.


Information for this briefing was found via the sources 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

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Denison Mines Recovers Uranium Via ISR Methods At Wheeler River

Denison Mines (TSX: DML) has achieved a new feat at its Wheeler River project in...

Monday, October 17, 2022, 08:52:49 AM

Future Shock: A Forward Look At The Uranium Market

Title card presented with apologies to Herbie Hancock. There might be more written about energy...

Sunday, March 28, 2021, 09:00:00 AM

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

Provision In U.S. Government Spending Bill Very Constructive For Uranium Mining Industry

After threatening a veto, U.S. President Trump finally signed a massive US$2.3 trillion COVID-19 relief...

Monday, January 4, 2021, 12:00:00 PM