Issue link: http://resourceworld.uberflip.com/i/554714
34 www.resourceworld.com a u g u s t / s e p t e m b e r 2 0 1 5 miNiNg DenisOn Mines TO Merge WiTh fissiOn uraniuM Denison Mines Corp. [DML-TSX; DNN- NYSE MKT] and Fission uranium Corp. [FCU-TSX; FCUUF-OTCQX; 2FU-FSE] have signed a Binding Letter of Agreement to merge their companies. Their combined assets will be two world class uranium exploration and development projects: Fission's 100%-owned Patterson Lake South Project, and Denison's 60%-owned Wheeler River Project, both in the Athabasca Basin, northern Saskatchewan. Patterson Lake South hosts a 79,610,000 lbs U 3 O 8 indicated mineral resource, including a high-grade zone of 44,297,000 lbs U 3 O 8 grading 18.21% U 3 O 8 . Inferred resources are 25,884,000 lbs U 3 O 8 , includ- ing a high-grade zone of 13,860,000 lbs U 3 O 8 of 26.35%U 3 O 8 . Denison has interests in exploration and development projects in Canada, Zambia, Namibia, and Mongolia, includ- ing the high-grade Phoenix deposits on the Wheeler Project. Denison's interests in Saskatchewan also include a 22.5% inter- est in the McClean Lake joint venture, which includes several uranium deposits and the McClean Lake uranium mill, plus a 25.17% interest in the Midwest deposit and a 60% interest in the J-Zone deposit on the Waterbury property. Subject to the terms in the agreement, Fission shareholders will receive 1.26 shares of Denison for each share of Fission, plus $0.0001 per share in cash. Upon com- pletion of the transaction, the combined company, to be named Denison Energy Corp., will be approximately 50%-owned by each of Denison's and Fission's existing shareholders on a fully-diluted in-the- money basis. The market capitalization of Denison and Fission on a combined basis is anticipated to be about CDN $900 mil- lion. Based on the 30-day volume weighted average price of Denison's shares on the TSX of CDN $0.99 on July 3, 2015, the offer implies a price per Fission share of CDN $1.25 and represents a premium of approximately 18% to the 30-day volume weighted average price of Fission's shares on the TSX of CDN $1.06 on July 3, 2015. Ron Hochstein, Executive Chairman of Denison, commented, "The continued exploration success at our Phoenix deposit and Gryphon discovery, in combination with the discovery and exploration success of the world class Triple R deposit puts the combined company in an incredibly strong strategic position, with the most significant development portfolio in the world. We are confident that our shareholders will benefit from the value creation opportunities that will be realized through an expanded and more diversified uranium company." Dev Randhawa, Chairman and CEO of Fission stated, "This merger will create the uranium industry's leading exploration and development company at a time when the sector is poised for growth." Management from Fission and Denison will be combined. Lukas Lundin will become non-executive Chairman and Dev Randhawa will become the CEO of the combined company. Ross McElroy will be appointed President and COO. David Cates will become CFO. n