Denison shareholders back deal with Energy Fuels valued at near $100M

TORONTO – Denison Mines Corp. (TSX:DML) shareholders have voted overwhelming in favour of an agreement to spin off the company’s U.S. assets in a mostly stock deal that will see them take a controlling interest in fellow uranium miner Energy Fuels Inc. (TSX:EFR).

Under terms of the stock-swap deal valued at close to $100 million and approved in Monday’s special vote, Energy Fuels will issue a promissory note and a nominal amount of cash to acquire Denison’s U.S. mining assets and operations as well as all of the inter-company debt between Denison and the U.S. mining division.

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Toronto-based Energy Fuels will later pay off the note by issuing some 425.4 million common shares to Denison’s shareholders, who will then own about 66.5 per cent of the stock in Energy Fuels.

Energy Fuels shares were up a penny at 23 cents in early afternoon trading Monday on the Toronto Stock Exchange.

The deal is expected to become effective by the end of the month, assuming Ontario court approval.