Ivanhoe’s Kipushi zinc mine in DRC officially reopens
The restart marked exactly a century since the mine first went into production.
Uranium Energy Corp. (NYSE American: UEC) announced overnight that it had received a competing offer to acquire exploration outfit UEX Corporation (TSX: UEX) in Saskatchewan and named Denison Mines (TSX: DML) as the bidder.
UEC announced on June 13 an all-scrip bid of 0.0831 of one UEC share in exchange for each outstanding UEX share. It provides an implied consideration of C$0.43 per UEX share, which is a 50% premium to its last trading day close.
Canaccord Genuity Capital Markets analyst Katie Lachapelle views the development as a general positive for Denison, given they were considered the logical buyer of UEX.
She expects Denison to bid enough to comfortably cover the break fee plus a minimum 5% premium to shareholders, or likely more. “Despite having a strong balance sheet of C$59 million cash and C$155 million in physical uranium, we expect Denison’s proposal to be an all-share transaction,” said Lachapelle in a research note.
By acquiring UEX, Denison would consolidate 100% of its flagship Wheeler River project, of which it currently owns 95%.
“Importantly, an acquisition of UEX would allow Denison to consolidate 100% ownership in our flagship Wheeler River project at an ideal time. [It comes] ahead of the anticipated final technical de-risking steps associated with the feasibility study in progress for the planned Phoenix in-situ recovery operation,” said Denison president and CEO David Coates in a press statement.
