Titan-Dejour combining uranium assets

Vancouver – Titan Uranium (TUE-V, TUEFF-O) plans to acquire all of Dejour Enterprises‘ (DJE-V, DJEFF-O) uranium projects in return for a 37% equity stake plus other considerations.

The proposed deal sees over 3,900 sq. kms of Athabasca Basin-area claims and permits transferred over to Titan along with several million dollars of recent exploration data, significantly boosting the junior’s uranium portfolio and giving it one of the larger footprints in the region.

Dejour plans to focus on its core oil and gas projects in Mississippi, Texas, Colorado, Utah and southern Alberta while maintaining uranium market exposure through its planned holdings of 17.5-million shares of Titan plus 3-million warrants (exercisable at $2.00 apiece for two years). It also retains a 1% net smelter royalty and a 10% carried working interest in each contributed uranium property to the bankable feasibility level. Dejour will hold a pair of seats on Titan’s board and will also contribute members of its technical team.

Titan’s combined Athabasca Basin holdings will total more than 5,800 sq. kms and will include major sections of the five major conductive areas in the southwestern section of the Basin. Many of the Dejour properties are adjacent and contiguous to Titan’s projects.

Titan’s president and CEO Phil Olson described the deal as, “solidifying Titan’s position as a dominant explorer in the southwest region of the Athabasca Basin.” He continued, “Titan intends to emerge as a sector consolidator amongst the junior explorers in the Basin.”

Although it reports a treasury of more than $10 million, Titan announced planned financings over the next 6-to-12 months to fund tentative work programs on its projects.

Following trading halts for the announcement, shares of Titan closed up a penny at $2.30 on volume of 560,000 while Dejour lost 7 to $1.66 per share on trading volume of 445,000. Both companies, along with many uranium explorers, have experienced recent share price increases attributed to an anticipated supply crunch for the metal following a major flooding event at Cameco‘s (CCO-T, CCJ-N) 50%-owned Cigar Lake uranium project that is expected to setback planned production for years.