Denison Mines Corp., the Canadian uranium miner with stakes in the U.S., Canada, Mongolia and Zambia, plans to counter Mega Uranium Ltd.’s bid and offer C$26.7 million ($25.9 million) for Rockgate Capital Corp.
For each share they own, Rockgate holders would get 0.192 of a Denison share, valued at 23 Canadian cents, or 47 percent more than yesterday’s closing price, the Toronto-based company said in a statement today. Mega, a Toronto-based company with a mine in Australia, announced last month it would acquire Rockgate.
Denison Chief Executive Officer Ron Hochstein said some Rockgate investors were unhappy with Mega Uranium’s offer. Denison “welcomed the opportunity given by key Rockgate shareholders to assist in undertaking this offer,” he said in the statement.
Rockgate’s Falea project in Mali will add to Denison’s Africa portfolio, which it plans to eventually spin off into its own company, said Hochstein.
Rockgate mines copper and uranium. The shares rose 32 percent to 21 Canadian cents at the close in Toronto. Vancouver-based Rockgate has fallen 61 percent this year.