Denison Mines proposes to purchase JCU (Canada) Exploration
Denison Mines made an offer to acquire a 100% stake in JCU (Canada) Exploration Company, shortly after UEX signed an agreement to buy the company.
JCU is an Overseas Uranium Resources Development Unit (OURD).
It holds interests in uranium project (JV) joint ventures in Canada. This includes a 10% interest in the 90% Denison-owned Wheeler River uranium project in Saskatchewan.
The uranium mine promoter’s offer includes $ 32.9 million (CDN $ 40.5 million) in cash for JCU and the assumption of JCU’s outstanding liabilities to the Japan Agency for atomic energy.
Last month, JCU reached a definitive purchase agreement with UEX for up to $ 10.1 million (C $ 12.5 million) in cash and assumption of existing liabilities.
At that time, UEX said the combination of UEX and JCU would create a “ compelling mid-size uranium development company ” exposed to short-term uranium production.
Denison said his binding offer was subject to the completion of final documentation, a regulatory nod and termination of the existing purchase contract between OURD and UEX.
The firm, however, said there were no conditions for due diligence on JCU’s assets or for securing funding to fund the purchase price, as it already has enough cash to fully fund. the transaction.
Denison plans to maintain JCU as a corporate subsidiary, which will enable it to meet its JV commitments.
JCU also owns a 30% interest in the Millennium uranium project operated by Cameco, a 33.8% interest in the Kiggavik project and a 34.5% interest in UEX’s Christie Lake project.
The company also has a minority stake in eight other baseline and mid-term exploration projects in the Athabasca Basin.