Korean utility to acquire 17% of uranium miner Denison

Canada's Denison Mines has closed Cdn$94.9 million in private equity financing in exchange for the Korea Electrical Power Company owning a 17% stake in the uranium mining company.

RENO, NV - 

Denison Mines and Korea Electrical Power Company (KEPCO) have signed agreements which will allow the South Korean utility to buy a 17% stake in the Toronto uranium mining company as well as purchase one-fifth of Denison's U₃0₈ production.

A KEPCO subsidiary will purchase 58 million common shares of Denison at an issue price of Cdn$1.30 per share for gross proceeds of Cdn$75.4 million (US$65.7 million).

Meanwhile entities affiliated with Denison Chairman Lukas Lundin will purchase 15 million common shares for gross proceeds of Cdn$19.5 million (US$17 million). Both are on a private placement basis.

On June 15^th it was announced that Denison and KEPCO also entered into a long-term offtake agreement which requires Denison to deliver 20% of its annual U₃0₈  production, but not less than 350,000 pounds annually from 2011 to 2015. Denison has also granted KEPCO an option, exercisable within 30 days of the closure of the equity financing, to purchase an additional 400,000 pounds of U₃0₈  per year from 2011 to 2015.

The offtake agreement also provides that KEPCO will purchase 20% of Denison's uranium production after 2015, subject to agreement on pricing and that the utility company maintain a minimum 10% shareholding in Denison.

KEPCO has also appointed Joo-Ok Chang, vice president of KEPCO, to become a director of Denison, effective upon the closing of the share issuance to KEPCO.

Denison is an intermediate uranium producer in North America with mining assets in the Athabasca Basin of Saskatchewan, Canada and in Colorado, Utah and Arizona. The company has ownership interest in two of the conventional uranium mills operating in North America, as well as land positions in the United States, Canada, Mongolia and Zambia.

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Link didn't Work http://goldstocktrades.wordpress.com/2009/07/07/south-korea-purchases-denison-mines-top-uranium-producer/ by Buy Uranium on July 07 2009, 17:16 Find this comment inappropriate? Report it

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