Canadian Mining Journal

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ACQUISITION: Denison sets sights on White Canyon Uranium

TORONTO - Denison Mines  has made a friendly takeover offer for White Canyon Uranium of West Perth, Australia. Denison plans to acquire 100% of White Canyon's issued shares for approximately $56.6 million. The directors of White Canyon...



TORONTO – Denison Mines  has made a friendly takeover offer for White Canyon Uranium of West Perth, Australia. Denison plans to acquire 100% of White Canyon’s issued shares for approximately $56.6 million. The directors of White Canyon have unanimously recommended that its shareholders approve the deal.

White Canyon owns 100% interest in five uranium projects in Utah. The Daneros-Lark Royal project has been granted a mine permit. It is the first uranium mining permit granted by the state of Utah in over 30 years. The mine made its first shipment to Denison’s White Mesa mill in December 2009. The Geitus, Blue Jay, Marcy-Look and Thompson projects are in the advanced exploration stage. (See also www.WhiteCanyonUranium.com.au.

Denison says the acquisition of White Canyon will fit well into its growth strategy in the United States. President and CEO Ron Hochstein stated, The acquisition provides Denison additional control over its milling schedules and uranium production and will establish Denison in a new, fourth mining district, near its White Mesa mill, which has significant potential for immediate resource growth.”

The Canadian company announced a $65-million ought deal financing to top up its treasury for the sale. Denison will issue 18.3 million common shares at a purchase price of $3.35 per share.

The Denison offer is subject to a number of conditions and expected to close around March 15, 2001. Visit www.DensionMines.com for additional information.