Denison to Take Over IUC

Denison Mines (DEN-T, DNMIF-O) plans to move back into the mid-tier of uranium producers through a friendly merger with International Uranium (IUC-T, IUCPF-O).

The merger gives each company’s shareholders a 50% interest in the new company, to be called Denison Mines. The mechanics of the merger require a share exchange of one Denison for 2.88 International Uranium shares, with Denison warrants re-adjusted to reflect the exchange ratio.

Shareholders of both companies are to vote on the merger, with Denison needing a two-thirds vote in favour of the transaction and IUC a simple majority. There are regulatory approvals needed for the share issue. Votes are scheduled for mid-November with the goal of closing in mid-December.

IUC chairman Lukas Lundin will chair the new board of directors, with Denison’s Peter Farmer taking on the chief executive role and IUC’s Ron Hochstein becoming president and chief operating officer. Lundin family interests, which hold a 19.9% interest in IUC, have locked up shares to the transaction.

The combined company would have a 22.5% interest in the McClean Lake mine and mill and a 25.17% interest in the Midwest Lake uranium project, both in northern Saskatchewan and both contributed by Denison. It would also own the White Mesa uranium mill in Utah, contributed by IUC, and have exploration and development interests in Mongolia, Australia, the southwestern United States, and northern Saskatchewan.