Denison Mines Corp (NYSEAMERICAN: DNN) has gained 50% ownership of JCU Exploration Company. It is pretty excited to complete the acquisition, paying $20.5 million to UEX Corporation.
Cates speaks out
The President and CEO of Denison David Cates opine, “Denison is pleased to have acquired a 50% interest in JCU – which holds a unique and valuable portfolio of strategic Canadian uranium interests, including a 10% interest in Denison’s flagship Wheeler River project.”
Cates believes there is quite a lot to gain from JCU’s portfolio of assets. He asserts that they will do their best to leverage its considerable value, outlining that the shareholders will also benefit significantly.
The move to consolidate 95% interest in Wheeler River is one thing, and the impact of the latest acquisition on Denison’s growth and expansion is another. However, it is a step towards the right direction in helping the company expand the Athabasca Basin development portfolio to cover more crucial Canadian uranium development projects. One of such projects happens to be the Millennium and Kiggavik.
The new acquisition’s Project Portfolio
Denison Mines Corp considered several aspects of the portfolio of JCU. The first one, which happens to be the most important, happens to be its Canadian assets. It considers the twelve uranium project joint venture portfolio an excellent addition that will maximize its revenue streams.
Denison speaks about the 30.099% interest in the Millennium Project, the Millennium project represented by 30.099% interest, and the Kiggavik project’s interest standing at 33.8123%. It is also important to mention the Christie Lake project, which is an interest of about 34.4508%.
Terms of the deal
The agreement arrived at by the two provided that Denison gives UEX $40.95 million. The amount was to facilitate the purchase of JCU from UEX.
UEX enjoys the freedom to move the Term Loan maturity, but that must be within a timeframe of about 90 days. So the associated interest in that regard would be about 4% from the date of the initial advance.
