TORONTO — Northern Continental Resources of Vancouver has agreed to a friendly takeover by Toronto-based Denison Mines. Northern Continental’s chief asset is its 60% interest in the Russell Lake uranium project in the Athabasca Basin.
Denison intends to acquire all of the Northern Continental common shares by issuing one common share of Denison for every 10.87 shares of Northern Continental (or, one common share of Northern Continental is equal to 0.0920 shares of Denison), which represents a 28.7% premium based on the 20-day volume weighted average price of Northern Continental’s and Denison’s shares, and an approximate 64.8% premium over the closing price of Northern Continental’s shares on April 30th, 2009.
Denison has also agreed to provide Northern Continental with a repayable, $495,000 bridge loan to provide working capital until the takeover is completed.
Further details are available at either www.DenisonMines.com or www.NorthernContinental.ca.