[caption id="attachment_1003724693" align="aligncenter" width="479"] Wheeler River might be the next uranium producer in Saskatchewan. (Image: Denison Mines)
SASKATCHEWAN – Denison Mines Corp
. has struck a deal to acquire the 24% interest in the Wheeler River uranium project currently held by Cameco Corp
. Denison will issue approximately 24.6 million shares at a deemed price of $0.65 per share, making the transaction worth about $16 million.
The arrangement will give Denison a 90% interest in Wheeler River, the largest undeveloped uranium deposit in the eastern Athabasca Basin. The balance will be held by JCU (Canada) Exploration Co
. If JCU exercises its right of first refusal, Denison’s share would become 86.84%.
Denison president and CEO David Cates said, “We are eager to continue advancing the project towards a development decision – with the next step being the planned completion of a pre-feasibility study before the end of the third quarter.”
The Wheeler River property hosts the unconformity-hosted Phoenix and basement-hosted Gryphon deposits. Together the deposits have an indicated mineral resource of 132.1 million lb. of uranium oxide at an average grade of 3.3%. The combined inferred resource is 3.0 million lb. of uranium oxide at 1.7%. The project is located along the road and power line that runs between Cameco’s McArthur River mine and Key Lake mill complex.
Additional information is available at www.DenisonMines.com.