US-focused Uranium Energy Corp (UEC) has five business days to decide if it is going to improve its offer for UEX, after Denison Mines threw its hat in the ring for the Canadian exploration company.
UEC, which made its bid for UEX in June with a view of entering two of Canada’s most prospective uranium districts in Saskatchewan and Nunavut, said the board of UEX had advised it that the Denison Mines offer constituted a “superior proposal” and that it intended to enter into an agreement with Denison.
“While the competing offer for UEX validates the merits of this acquisition, since announcing the transaction, there has been significant market deterioration in the sector and this has created a broader set of growth opportunities that would be highly accretive and strategic in nature.
“We continue to be in the driver's seat with our acquisition of UEX; however, we have made no determination as to whether we will choose to match the competing offer. UEC will do a careful analysis to determine whether this or other opportunities we are considering provide the most compelling value for our shareholders,” said president and CEO Amir Adnani.
In the event that UEC elects not to match and if UEX terminates the arrangement agreement in order to enter into an agreement with Denison, then UEX is required to pay to UEC a termination fee of $8.25-million.