www.denisonmines.com
Denison Mines Corp. is an intermediate uranium producer in North America, with mining assets in the Athabasca Basin region of Saskatchewan, Canada and the southwest United States including Colorado, Utah, and Arizona. Further, the Company has ownership interests in two of the four conventional uranium mills operating in North America today. The Company also has a strong exploration and development portfolio with large land positions in the United States, Canada, Mongolia and Zambia.
Denison completes C$94.9 mln equity financing and offtake deal with KEPCO of South Korea
Denison Mines Corp. (TSX: DML) finalised agreements with Korea Electric Power Corp and certain of its subsidiaries (collectively KEPCO), previously announced in April, regarding C$94.9 million of equity financing and entered into a long-term uranium offtake deal with KEPCO.
KEPCO has agreed to purchase 58 million Denison shares at C$1.30 each, raising $75.4 million, and entities affiliated with Denison director Lukas Lundin will purchase an additional 15 million shares at the same price for proceeds of C$19.5 million. KEPCO will own approximately 17 percent of Denison’s capital.
Under the offtake agreement, Denison will deliver to KEPCO 20 percent of its annual triuranium octoxide production, plus or minus 10 percent but not less than 350,000 per year from 2010 through 2015.
Denison has also granted KEPCO an option, exercisable within 30 days from the closing of the equity financing, to purchase an additional 400,000 pounds U3O8 per year from 2011 through 2015.
The offtake agreement also provides that KEPCO will purchase 20 percent of Denison's uranium production after 2015, subject to agreement on pricing and KEPCO maintaining a 10 percent minimum stake in Denison.
