TORONTO — Denison Mines has arranged a share placement issue worth a total of C$94.9 million. The company will issue 58 million common shares worth C$75.2 million by way of private placement to Korea Electric Power Corp. That will give Korea Electric a 19.9% interest in Denison when the deal is completed. It’s investment entitles Korea Electric to nominate two directors to the Denison board and the right of first offer to acquire up to 20% of any assets Denison acquires with a partner or sells.
Korea Electric also intends to sign an off-take agreement to purchase 20% of Denison’s uranium oxide production. Deliveries would begin in 2010 with minimum of 510,000 to 390,000 lb U3O8 per year from 2010 to 2015. The price will be based on industry standard terms.
Entities nominated by Denison chairman Lukas Lundin have agree to acquire a further 15 million common shares worth an additional C$19.4 million.
These transactions are subject to the completion of due diligence by Korea Electric, execution and delivery of definitive agreements on or before June 15, 2009, and receipt of certain regulatory approvals including Toronto Stock Exchange and NYSE Amex approval.
Please visit either www.DenisonMines.com or www.Kepco.co.kr/eng/.