Denison Re-Enters The Fray To Acquire UEX Corp, Bidding Higher Than Uranium Energy

Denison Mines (TSX: DML) appears to be in a competition with Uranium Energy Corp (NYSE: URC) to see whom can propose the smallest increase in their bids to acquire UEX Corporation (TSXV: UEX). Denison this morning announced it has revised its prior offer to acquire the exploration firm, this time electing to publicly reveal its proposal.

The proposal, which consists of an all-share deal, amounts to 0.32 shares of Denison for each UEX share, the equivalent of $0.51 per share as of yesterdays market close. The figure represents a $0.02 premium to the revised agreement entered into between Uranium Energy Corp and UEX Corp yesterday. That deal currently sits with implied consideration of $0.49 per share.

“Following the expiration of our previous acquisition proposal, which equated to a premium over the Amended UEC Agreement on a 10- and 20-day volume weighted average price basis, and after internal discussions, including with our legal and financial advisors, Denison decided to make a further premium acquisition proposal to UEX,” commented Denison CEO David Cates.

The company commented that it is aware that its offer might not prevail given UEC’s right to match the superior offer. Denison also noted that its prior offer was matched by UEC, “despite the fact it implied a lower UEX price from the perspective of premiums over normalized trading periods.”

One other notable aspect of the latest offer by Denison is that definitive documents have reportedly been provided to UEX, versus the prior offer being a non-binding acquisition proposal.

The planned securityholder meeting of UEX Corp has as a result been postponed from today to that of August 15.

Denison Mines last traded at $1.60 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

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

Anfield Energy Sees UEC Increase Ownership Stake To 32.4%

Anfield Energy (TSXV: AEC) has seen a major shareholder dramatically increase their interest in the...
Monday, June 23, 2025, 10:00:29 AM

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 ...

Tuesday, May 4, 2021, 08:46:04 AM

Uranium Energy Corp Closes Uranium One Americas $112 Million Acquisition

Uranium Energy Corp (NYSE: UEC) announced this morning the closing of its previously announced acquisition of...

Monday, December 20, 2021, 09:35:00 AM

Uranium Energy Corp Begins Production At Christensen Ranch ISR Facility

Uranium Energy Corp (NYSE: UEC) can now officially be classified as a uranium producer, announcing...

Tuesday, August 13, 2024, 08:35:08 AM

Uranium Energy To Now Acquire UEX Corp For Implied Consideration Of $0.49 Per Share, Denison Mines Walks From Discussions

Uranium Energy Corp (NYSE: UEC) has upped its prior offer to acquire UEX Corp (TSX:...

Monday, August 8, 2022, 09:03:19 AM