GoviEx Uranium and Denison Mines join forces in Africa

31 March 2016

GoviEx Uranium Inc and Denison Mines Corp have announced the execution of a definitive share purchase agreement to combine their respective African uranium mineral interests and create "the leading Africa-focused uranium development company".

GoviEx will acquire Denison's wholly owned subsidiary Rockgate Capital Corp, which holds all of Denison's Africa-based uranium interests in exchange for about 56.1 million shares of GoviEx plus around 22.4 million common share purchase warrants of GoviEx. Upon completion of the transaction, Denison will hold 25% of GoviEx shares outstanding and 28% of GoviEx shares on a fully diluted basis.

The asset portfolio of the combined company will include two permitted uranium development projects - including GoviEx's Madaouela project in Niger and Denison's Mutanga project in Zambia. It will also include Denison's Falea project, an advanced exploration-stage asset project in Mali, and the exploration-stage Dome project in Namibia. Following completion of the transaction, GoviEx will control "one of the largest uranium resource bases among publicly listed companies", with combined National Instrument 43-101 measuredĀ and indicated resources of 124.29 Mlbs U3O8, plus inferred resources of 73.11 Mlbs U3O8.

Govind Friedland, founder and executive chairman of GoviEx, said the transaction "provides GoviEx with geographical diversification and allows Denison to focus on its core assets in Canada while enhancing its upside exposure to our combined Africa assets."

David Cates, president and CEO of Denison, added that Denison shareholders will gain "significant exposure" to the Madaouela project. The transaction "completes Denison's transition to fully focus on becoming an Athabasca Basin uranium producer," he said.

As part of the transaction, GoviEx will undertake a concurrent equity financing by means of a non-brokered private placement to raise gross proceeds of not less than $2 million of which Denison will provide the lead order for 25% up to a maximum of $500,000. The placement is expected to be completed prior to, or concurrently with, the closing of the transaction.

The transaction is expected to close on orĀ around 17 May.

Raymond James Ltd and Haywood Securities Inc are acting as GoviEx's and Denison's financial advisors, respectively.

Researched and written
by World Nuclear News