Uranium mine developer Denison Mines has delivered a binding offer to Overseas Uranium Resources Development to buy its wholly-owned subsidiary JCU (Canada) Exploration Company, only weeks after UEX Corp offered to buy the business.
JCU holds a portfolio of uranium project joint venture (JV) interests in Canada, including a 10% interest in Denison's 90%-owned Wheeler River uranium project, in Saskatchewan.
Announcing its offer on Tuesday, Denison said it would pay C$40.5-million in cash for JCU and assume the company’s outstanding liabilities owed to the Japan Atomic Energy Agency.
On April 22, UEX said it would acquire JCU from OURD for up to C$12.5-million in cash and the assumption of existing liabilities. The combination of the two companies would create a mid-size uranium development company.
Denison said its offer was binding, subject only to the completion of definitive documentation, regulatory approvals, and the termination of OURD's existing definitive purchase agreement with UEX.
“There are no conditions for due diligence on the assets of JCU, or obtaining the necessary financing to fund the purchase price – as Denison already possesses sufficient cash to fully fund the acquisition,” the uranium explorer and developer said.
Denison further said that JCU would be maintained as a corporate subsidiary for it to meet its JV commitments.
Besides its 10% ownership in the Wheeler River project, JCU also has a 30% ownership stake in Cameco's Millennium project, a 33.8% ownership in the Kiggavik project of Orano Canada and a 34.5% interest in UEX’s Christie Lake project.
JCU also owns a minority equity stake in eight other grassroots and mid-stage exploration projects within the Athabasca basin.