FP says Denison Mines and Fission Uranium are merging

2015-07-07 08:33 ET - In the News

Also In the News (C-CCO) Cameco Corp
Also In the News (C-FCU) Fission Uranium Corp

The Financial Post reports in its Tuesday edition that Denison Mines and Fission Uranium are merging, creating a clear leader among the emerging companies in Saskatchewan's Athabasca basin. The Post's Peter Koven writes that the key asset in this deal is Fission's Patterson Lake South project, one of the top uranium finds in decades. The combined company will have greater scale and management expertise. Denison's Wheeler River project is also very promising. Denison has a host of other uranium assets. Under the terms of the deal, Denison will exchange 1.26 of its shares for each Fission share, valuing Fission at $425-million or $1.10 a share, and giving its shareholders a 13-per-cent premium based on Monday's closing prices. Denison and Fission shareholders will each own half the company after the merger, which will be named Denison Energy Corp. and will have a market value of about $900-million. Denison is one of mining tycoon Lukas Lundin's companies. Fission chief executive officer Dev Randhawa will stay on as CEO. The Post says Cameco or one of its large rivals could disrupt this deal with a rival bid for one or both companies. The break fee is a modest $14-million, which is not a major deterrent.

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