Kepco finalizes acquisition of Denison stake

Comment: Denison Mines letting another foreign investor buy their stock! According to the local uranium company that their uranium will stay in America for their Nuke Plants...just another fairy tale from the local yokel uranium group( Canada) in Virginia!! We will not know where the uranium will go!

22 June 2009

Denison Mines and Korea Electric Power Corp (Kepco) have signed definitive agreements relating to the South Korean utility acquiring a 17% stake in the Canada-based uranium mining company, as well as an offtake agreement.

In April, the companies entered into a non-binding memorandum of understanding (MoU) under which Kepco would purchase one-fifth of Denison's U3O8 production and acquire a 19.9% stake in Denison for C$75.4 million ($62.2 million).

Under the newly-signed definitive agreements, Kepco will purchase 58 million common shares of Denison at an issue price of C$1.30 ($1.14) per share for proceeds of C$75.4 million ($65.9 million). As a result, Kepco would own some 17% of Denison's issued capital. The will also have the right to appoint two directors to Denison's board of directors.

In addition, Denison's chairman, Lukas Lundin, will also acquire 15 million common shares for an additional C$19.5 million ($17.1 million).

Denison and Kepco have also entered into a long-term offtake agreement which provides for the delivery to Kepco of 20% of Denison's annual U3O8 production, but not less than 350,000 pounds U3O8 (160 tonnes U3O8) annually, from 2010 to 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 (180 tonnes U3O8) annually from 2011 to 2015. Under the agreement, the purchase price of the uranium that Kepco buys from Denison will be based on "industry standard terms."

The offtake agreement also provides that Kepco will purchase 20% of Denison's uranium production after 2015, subject to agreement on pricing and Kepco maintaining a 10% minimum shareholding in Denison.

Denison mines uranium in Saskatchewan, Canada, and in southwest USA. It also has ownership interests in two of the four conventional uranium mills currently operating in North America. In addition, the company is exploring properties in Mongolia and Zambia.

http://www.world-nuclear-news.org/C-Kepco_finalizes_acquisition_of_stake_in_Denison-2206094.html