White Canyon Uranium has agreed to a friendly takeover by Denison Mines Corp., the companies announced on Feb. 22. Denison will pay AU$57 million to acquire 100 percent of White Canyon’s issued shares at 24 Australian cents a share. The offer represents a 20% premium on the closing price of White Canyon’s shares as per last Friday’s trading on the ASX.
White Canyon has unanimously recommended that its shareholders approve the deal.
According to Ron Hochstein, Denison’s president and CEO, “The acquisition provides Denison additional control over its milling schedules and uranium production and will establish Denison in a new, fourth mining district near its White Mesa mill, which has significant potential for immediate resource growth.”
Coinciding with the friendly takeover, Denison also announced a CDN$65 million bought deal financing to top up its treasury. Denison will issue 18.3 million common shares for purchase at CDN$3.55 per share.
Toronto-based Denison is a mid-tier uranium producer with mining assets in the Athabasca region of Saskatchewan, Canada, and the U.S. southwest. White Canyon, headquartered in Perth, Australia, has operations in Utah. White Canyon commenced uranium production in 2009 from its 100%-owned Daneros Uranium Mine, which processes uranium at Denison’s nearby White Mesa mill.
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