Denison Adds Exciting New Uranium Discovery to Its Athabasca
Portfolio With IEC Closing
TORONTO, ONTARIO--(Marketwired - Jun 9, 2014) - Denison Mines
Corp. (TSX:DML) (NYSEMKT:DNN) ("Denison" or the "Company") is
pleased to report the closing on June 6, 2014 of a previously
announced transaction with International Enexco Ltd. ("IEC"),
whereby Denison acquired all of the issued and outstanding common
shares ("IEC Shares") of IEC. As a result of the transaction,
Denison has acquired IEC's uranium exploration assets in the
Eastern Athabasca Basin of Saskatchewan, consisting of a 30%
interest in the Mann Lake property and an additional 20% interest
in Denison's Bachman Lake property.
Mann Lake is a joint venture with Cameco Corp. (52.5%) and AREVA
Resources Canada (17.5%) and is the site of a new high grade,
unconformity related uranium discovery announced in March of this
year in the prolific McArthur River - Key Lake corridor. Cameco
Corp. is the operator.
The Transaction
The acquisition of IEC was completed by way of plan of
arrangement under the Business Corporations Act (British
Columbia) (the "Arrangement"). As a result of the Arrangement,
Denison acquired all of the issued and outstanding IEC Shares that
it did not already own, while certain non-Canadian assets were spun
out to a former subsidiary of IEC ("Spinco").
Under the Arrangement, each IEC Share was exchanged for 0.26 of
a Denison common share, one common share of Spinco, and one-half of
a warrant to acquire an additional Spinco share at a price of $5.00
for six months. Any outstanding warrants and options of IEC were
automatically exchanged for options and warrants of Denison and
Spinco. All options and warrants of Denison have been adjusted by
reference to the exchange ratio of 0.26. The Denison options issued
in the exchange will expire in 90 days, and the Denison warrants
issued in the exchange will expire in accordance with the expiry
dates of the original IEC warrants.
Spinco now holds 100% of the Contact Copper Project and all
other US mineral properties formerly owned by IEC. Former IEC
shareholders now own approximately 2.1% of Denison.
Denison is advised that, in accordance with exchange
requirements, trading of IEC Shares was halted at IEC's request at
the close of market on the TSX Venture Exchange on June 6, 2014 and
are expected to remain halted until IEC is delisted on June 10,
2014. Any IEC Shares traded prior to the trading halt that have not
yet settled represent only an entitlement to receive the
consideration under the Arrangement, as described above. IEC will
apply to cease to be a reporting issuer under the securities laws
of British Columbia and Alberta as soon as possible.
IEC shareholders who have not yet done so are encouraged to
tender any remaining IEC shares by contacting Computershare
Investor Services Inc. toll free at 1-800-564-6253 or by
email at corporateactions@computershare.com.
Mann Lake
The Mann Lake property is located in the Athabasca Basin,
approximately 25 kilometres southwest of the McArthur River mine,
and is on trend between McArthur River and Denison's 60% owned
Wheeler River property (see the attached map:
http://media3.marketwire.com/docs/950823-F1.pdf). Mann Lake is
considered to be highly prospective for unconformity related
uranium deposits due to its location, geology, alteration,
geochemistry and mineralization.
In March of this year, drill hole MN-060 targeted the extension
of weak mineralization encountered 300 metres along strike to the
north in drill hole MN-047. IEC reported that MN-060 intersected
high grade uranium mineralization consisting of 2.31% eU3O8 over
5.1 metres at the sub-Athabasca unconformity. This was followed by
drill hole MN-065, which intersected 3.73% eU3O8 over 1.2 metres
half-way between MN-060 and MN-047. IEC has reported that known
mineralization now extends 300 metres and is open along strike in
both directions.
Bachman Lake
The Bachman Lake property is also located in the Eastern
Athabasca Basin and continues to be a high priority exploration
project for Denison due to the presence of strong conductors,
graphitic basement and sandstone alteration. Drilling is scheduled
to continue on the Bachman Lake property this summer.
Qualified Person
The disclosure of a scientific or technical nature contained in
this news release was prepared by Steve Blower P.Geo., Denison's
Vice President, Exploration, who is a Qualified Person in
accordance with the requirements of NI 43-101.
About Denison
Denison is a uranium exploration and development company
with interests in exploration and development projects in Canada,
Zambia, Namibia, and Mongolia. Including the high grade Phoenix
deposits, located on its 60% owned Wheeler project, Denison's
exploration project portfolio includes 42 projects and totals
approximately 483,000 hectares in the Eastern Athabasca Basin
region of Saskatchewan. Denison's interests in Saskatchewan also
include a 22.5% ownership interest in the McClean Lake joint
venture, which includes several uranium deposits and the McClean
Lake uranium mill, one of the world's largest uranium processing
facilities, plus a 25.17% interest in the Midwest deposit and a 60%
interest in the J-Zone deposit on the Waterbury property. Both the
Midwest and J Zone deposits are located within 20 kilometres of the
McClean Lake mill. Internationally, Denison owns 100% of the
conventional heap leach Mutanga project in Zambia, 100% of the
uranium/copper/silver Falea project in Mali, a 90% interest in the
Dome project in Namibia, and an 85% interest in the in-situ
recovery projects held by the Gurvan Saihan joint venture in
Mongolia.
Denison is engaged in mine decommissioning and environmental
services through its DES division and is the manager of Uranium
Participation Corporation, a publicly traded company which invests
in uranium oxide and uranium hexafluoride.
Cautionary Statements
Certain information contained in this press release constitutes
"forward-looking information", within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and similar
Canadian legislation concerning the business, operations and
financial performance and condition of Denison.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "plans", "expects"
or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur", "be achieved" or "has
the potential to".
Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made,
and they are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Denison to be materially different
from those expressed or implied by such forward-looking statements.
Denison believes that the expectations reflected in this
forward-looking information are reasonable but no assurance can be
given that these expectations will prove to be correct and such
forward-looking information included in this press release should
not be unduly relied upon. This information speaks only as of the
date of this press release. In particular, this press release may
contain forward-looking information pertaining to the following:
the likelihood of completing and benefits to be derived from
corporate transactions; the estimates of Denison's mineral reserves
and mineral resources; expectations regarding the toll milling of
Cigar Lake ores; capital expenditure programs, estimated
exploration and development expenditures and reclamation costs;
expectations of market prices and costs; supply and demand for
uranium ("U3O8"); possible impacts of litigation and regulatory
actions on Denison; exploration, development and expansion plans
and objectives; expectations regarding adding to its mineral
reserves and resources through acquisitions and exploration; and
receipt of regulatory approvals, permits and licenses under
governmental regulatory regimes.
There can be no assurance that such statements will prove to be
accurate, as Denison's actual results and future events could
differ materially from those anticipated in this forward-looking
information as a result of the factors discussed in or referred to
under the heading "Risk Factors" in Denison's Annual Information
Form dated March 14, 2014 available at http://www.sedar.com, and in
its Form 40-F available at http://www.sec.gov/edgar.shtml.
Accordingly, readers should not place undue reliance on
forward-looking statements. These factors are not, and should not
be construed as being, exhaustive. Statements relating to "mineral
reserves" or "mineral resources\" are deemed to be forward-looking
information, as they involve the implied assessment, based on
certain estimates and assumptions that the mineral reserves and
mineral resources described can be profitably produced in the
future. The forward-looking information contained in this press
release is expressly qualified by this cautionary statement.
Denison does not undertake any obligation to publicly update or
revise any forward-looking information after the date of this press
release to conform such information to actual results or to changes
in Denison's expectations except as otherwise required by
applicable legislation.
Denison Mines Corp.Ron HochsteinPresident and Chief Executive
Officer(416) 979-1991 ext 232Denison Mines Corp.Sophia
ShaneInvestor Relations(604) 689-7842www.denisonmines.com
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