Denison Mines Corp., a Canadian uranium producer, agreed to acquire Fission Uranium Corp. for about C$483 million ($382 million) to expand its presence in the Athabasca mining region in Saskatchewan.
Fission investors will receive 1.26 shares of Denison and a fraction of a Canadian cent for each common share, the companies said Monday in a statement. Dev Randhawa, Fission’s chairman and chief executive officer, will be CEO of the combined company and Lukas Lundin, a Denison board member, will become non-executive chairman.
The deal will give Denison the Patterson Lake South Project, the largest undeveloped uranium deposit in Canada’s Athabasca Basin, to add to its Wheeler River Project in northern Saskatchewan, the companies said.
The deal “puts the combined company in an incredibly strong strategic position, with the most significant development portfolio in the world,” Ron Hochstein, Denison’s executive chairman, said in the statement.
The combined market capitalization of the new entity, to be named Denison Energy Corp., will be C$900 million, the companies said. The implied offer is C$1.25 a share, which is about 18 percent more than the 30-day volume weighted average price of Denison’s shares in Toronto as of July 3, the companies said.