Denison shareholders OK fission

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

The proposed companies are: Denison Mines, which would hold the mining and remediation consulting business; Denison Energy, which has an option to buy 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. Proceeds will be used to buy 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 will begin trading before mid-March. Denison Mines retains the old ticker symbol den, Denison Energy takes the symbol dei, and Forte Resources will trade under frz.