Denison has sold its interest in Standard Trustco

After failing at the first attempt, Toronto based Denison Mines (TSE) has sold its 44.8% interest in Standard Trustco Ltd. to Roman Corp. for $71.6 million, the company said recently.

The new $22.95 per share stock purchase agreement is slightly lower than a previous $23-per-share offer which failed to gain the necessary regulatory approvals.

The initial offer was more than 15% above the average selling price of Standard Trustco stock and as a result, had to be offered to all shareholders unless the Ontario Securities Commission granted Denison an exemption.

The exemption was denied even though the Roman family is the principal shareholder in both Roman Corp. and Denison. While the stock sale did not represent a change in effective control, the OSC vetoed the first offer because it said holders of the same class of Standard shares would be treated differently.

However, the selling price of Standard Trustco stock has risen in recent weeks and the second purchase offer of $22.95 per share is within the 15% limit.

The sale will signficantly strengthen Denison’s financial position and enable the company to pursue any new natural resource opportunities that might arise, said Denison Chairman Helen Roman-Barber.

It will also expand Roman Corp.’s core asset base, she said. Denison is expected to use the proceeds to pay off most of its non-project debt.