Junior uranium firms Denison Mines Corp. and Fission Uranium Corp. are merging in a deal that creates a clear-cut leader among the emerging companies operating in Saskatchewan’s Athabasca Basin.
The key asset in this deal is Fission’s Patterson Lake South (PLS) project, one of the top uranium finds in decades. The combined company will have greater scale and management expertise, putting it in a stronger position to move the asset towards production. Denison’s Wheeler River project is also very promising, and the company has a host of other uranium assets around the world.
Under the terms of the deal, Denison will exchange 1.26 of its shares for each Fission share, valuing Fission at $425 million and giving its shareholders a 13 per cent premium based on Monday’s closing prices. Denison and Fission shareholders will each own half the company after the merger, which will be named Denison Energy Corp. and will have a market value of about $900 million.
Full content: World Nuclear News
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