Denison Mines (DEN-T) has concluded an alliance with an Australian junior that will give it an interest in a portfolio of uranium exploration properties in the Northern Territory and Western Australia.
Denison invests $3.8 million in 3 million shares of Energy Metals (EME-A), giving it a 12% stake in the company. Under the terms of the alliance, Denison will have the option to take up shares in any future equity issue of Energy Metals, sufficient to maintain its interest in the company. It also has a right of first refusal on any property transaction or joint-venture agreement Energy Metals may do. If Denison allows its shareholding to be diluted below 7.5%, the alliance provisions are suspended.
Energy Metals has a 53.3% interest in the Bigrlyi uranium project in the Northern Territory, near Yuendumu about 280 km northwest of Alice Springs. Bigrlyi, a calcrete-hosted uranium-vanadium deposit in Paleozoic sedimentary cover, was explored in the late 1970s and early 1980s, seeing more than 500 drill holes. Valhalla Uranium (VUL-A) owns 41.7% and Southern Cross Exploration (SCX-A) the other 5%.
Around Bigrlyi, the company has a land package of about 2,840 sq. km in the Ngalia sedimentary basin, and in Western Australia it has five other calcrete-hosted and sandstone-hosted uranium properties. All those properties are 100% owned.
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