Denison to buy White Canyon
24 February 2011
Canadian uranium producer Denison Mines has agreed to buy Australian uranium exploration and development company White Canyon, gaining White Canyon's Utah operations in the process.
(1).jpg "Daneros mine (White Canyon)") |
| Daneros (Image: White Canyon) |
The two companies have agreed to an offer worth about A$57 million ($57.4 million), and White Canyon has advised its shareholders to accept the offer. The offer is subject to a number of conditions including the receipt of the necessary regulatory approvals.
Denison already processes ore from White Canyon's operating Daneros uranium mine in Utah at its nearby White Mesa mill under a toll milling agreement, and last year signed an agency agreement with White Canyon to sell the mine's output on the spot market. Daneros, which started production in late 2009, was the first new conventional uranium mine in 30 years to receive a permit from the US Bureau of Land Management. It is expected to produce 500,000 pounds U3O8 (192 tU) per year.
According to Denison, the acquisition fits well into its US growth strategy. Denison president and CEO Ron Hochstein said the deal would provide Denison additional control over its milling schedules and uranium production, as well as establishing the company in a new mining district near its White Mesa mill with "significant potential for immediate resource growth."
As well as Daneros, White Canyon has various other uranium exploration projects in Utah.
Researched and written
by World Nuclear News