Denison shareholders approve fission

Shareholders have voted in favour of the plan of arrangement that would see Denison Energy (DEN-T) split into three separate companies in mining, hydrocarbons, and oilfield services.

The proposals, which got support from 95% of the shares voted, provide for three new companies: Denison Mines, holding the mining and remediation consulting business; Denison Energy, which has an option to purchase a private oil well service company; and Denison Oil, which is slated to merge with privately-held Forte Oil to become Forte Resources. Shares of Denison Mines and Forte are to be distributed to existing Denison Energy shareholders.

Denison Mines’ principal asset will be the former company’s 22.5% interest in the McClean Lake uranium mine in northern Saskatchewan, operated by Cogema Resources. It will also hold minority interests in the Midwest Lake and Wheeler River properties in the Athabasca Basin of Saskatchewan. Denison Environmental Services, a consulting company that manages mine closure and rehabilitation, will be part of Denison Mines.

Denison Energy has arranged a share offering to raise $125 million, an increase from the $120 million it had previously announced. The proceeds will go to purchasing Calfrac Well Services, a Calgary-based company that does fracturing and well-development work for oil and gas producers.

Provided the new listings receive the approval of the Toronto Stock Exchange, the three new companies are expected to begin trading on March 10. Denison Mines retains the old ticker symbol DEN, Denison Energy takes symbol DEI, and Forte Resources will trade under FRZ.