Denison Mines and Fission Uranium have executed a Binding Letter Agreement to combine their respective businesses. The Transaction creates a leading Canadian focused diversified uranium company – combining high quality assets and the management teams of two highly respected companies. Headlining the asset portfolio of the combined company will be two world class uranium exploration and development projects: Fission’s 100% owned Patterson Lake South Project, and Denison’s 60% owned Wheeler River Project, both located in the prolific Athabasca Basin, in Northern Saskatchewan, Canada.

The combined company, to be named ‘Denison Energy Corp’, will be approximately 50% owned by each of Denison’s and Fission’s existing shareholders on a fully-diluted in-the-money basis. The market capitalization of Denison and Fission on a combined basis is anticipated to be some  C$900 million.

Ron Hochstein, Executive Chairman of Denison, commented: “The continued exploration success at our Phoenix deposit and Gryphon discovery, in combination with the discovery and exploration success of the world class Triple R deposit puts the combined company in an incredibly strong strategic position, with the most significant development portfolio in the world. We are confident that our shareholders will benefit from the value creation opportunities that will be realised through an expanded and more diversified uranium company.”

Dev Randhawa, Chairman & CEO of Fission, stated: “This merger will create the uranium industry’s leading exploration and development company at a time when the sector is poised for growth. Denison has a strong, diversified portfolio and, with the Triple R deposit, Fission is bringing the Athabasca Basin’s largest undeveloped high-grade resource as well as a successful and award-winning technical and management team.”

Transaction Highlights

• Consolidation of strategic uranium assets: An unrivalled portfolio of strategic uranium asset interests in the Athabasca Basin, headlined by Fission’s 100% owned PLS Project and Denison’s 60% owned Wheeler River Project and including Denison’s interests in the Midwest, McClean Lake, Waterbury Lake, Mann Lake, and Wolly projects, as well as Denison’s strategic 22.5% ownership interest in the McClean Lake Mill
• Continued exploration potential: Exploration foothold in both the historically prolific Eastern Athabasca Basin and the emergent Western Athabasca Basin, with a dominant combined land package of over 430,000 ha and a sizeable base of mineral resources defined under NI 43-101, providing the foundation for future resource growth
• Free cashflows: The toll-milling of ore from the Cigar Lake mine under a toll milling agreement between the McClean Lake Joint Venture and the Cigar Lake Joint Venture and management fees from Uranium Participation Corp are expected to provide the combined company with a source of cash in the future to fund its activities
• Complimentary combined management team: Management from Fission and Denison will be combined, offering expertise and skill in the uranium industry and mergers and acquisitions, as well as the proven ability to finance ambitious exploration programs and successfully explore and develop uranium mining projects
• Increased liquidity: Increased scale is expected to enhance trading liquidity and access to global capital markets
• Valuation upside: Various monetisation options in respect of Denison’s African exploration and development portfolio, including the Falea project in Mali and the Mutanga project in Zambia, are being considered by the combined company and may be pursued when market conditions permit.The senior executive team and the Board of Directors of the combined company will draw from the extensive experience and expertise of both companies. Lukas Lundin will become non-executive Chairman and Dev Randhawa will become the Chief Executive Officer of the combined company. Ross McElroy will be appointed President & Chief Operating Officer, and David Cates will become Chief Financial Officer. The Board of Directors will be comprised of ten directors: five of whom currently serve as directors of Denison and five of which will be appointed from the Board of Directors of Fission.