Denison granted reprieve on loan

Toronto-based Denison Mines (TSE) has been granted more time to pay off a $148.4-million corporate loan facility to the Toronto Dominion Bank and Bank of America. The deadline for repayment has been extended to April 1 from Jan. 31. Under the terms of the extension, Denison is prohibited from paying any dividends on and from acquiring, through redemption or otherwise, any of its issued shares. The financially troubled company has been attempting to solve its cash problems by selling off its European oil and gas assets as well as potash, coal and uranium interests. The possibility of a merger with another company is also being examined as a way to solve Denison’s problems.

Denison recently informed its preferred shareholders that it would be unable to redeem the $175 million in series B preferred shares outstanding. Preferred shareholders were scheduled to be granted the option of cashing them March 15.