Denison Mines Corp has received US$1.25 million in initial payments from Uranium Industry a.s., of the Czech Republic, as part of closing of the sale of its interest in the Gurvan Saihan Joint Venture (GSJV), which holds the company’s Mongolian uranium interests.
An amended and restated share purchase agreement was entered into by the parties on November 25, 2015, which replaced an agreement entered into in July 2015.
Under the terms of the agreement, Denison received US$1.25 million on or prior to closing and has rights to receive additional proceeds from the sale of up to US$12 million for total consideration of US$13.25 million.
The previous agreement contemplated a less sizeable cash payment on closing (US$250,000) and a deferred payment of US$19.75 million, which was to be made only in the event that all the mining licences for each of the Hairhan, Haraat, Gurvan Saihan and Ulzit projects were granted to the GSJV on or before November 30, 2015.
Denison’s president and CEO David Cates of Denison said, “Completing the sale of Denison’s GSJV interests to Uranium Industry represents a significant milestone for the company - achieving its objective of selling non-core international assets as a form of non-dilutive financing to fund our core activities in Canada’s Athabasca Basin.
“The sale also speaks to our management team’s commitment to the negotiations, over the last several months, by reaching an agreement that provides all stakeholders with the necessary incentive to ensure that Uranium Industry is successful in developing the uranium mining business in Mongolia.”
Uranium Industry has unique experience in the geology, mining and processing of uranium, and is the successor to a 75 year tradition of uranium mining and environmental remediation of uranium mines in the Czech Republic.
Uranium Industry is currently focused on geologic prospecting, mining, and processing of uranium ore in foreign countries that have traditionally had ongoing relations with the Czech Republic. It is active in Mongolia and established the Mon Czech Uranium joint venture with Mon-Atom LLC on June 17, 2015.
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan. Including its 60%-owned Wheeler River project, which hosts the high grade Phoenix and Gryphon uranium deposits, Denison’s exploration portfolio consists of numerous projects covering more than 390,000 hectares in the eastern Athabasca Basin.
Internationally, Denison owns 100% of the conventional heap leach Mutanga project in Zambia, 100% of the uranium/copper/silver Falea project in Mali and a 90% interest in the Dome project in Namibia.