Sunny day for uranium miners; Energy Fuels grabs Denison's American assets
Denison Mines (NYSEAMEX:DNN) was up 14.69% to $1.64 on Tuesday after announcing Energy Fuels Inc. (TSE:EFR) will acquire all its mining assets and operations located in the United States in exchange for 425.44 million common shares of EFR.
Energy Fuels was also up 16% to 29 cents a share.
Tuesday was a good day for uranium miners. Cameco Corporation (NYSE:CCJ) was up 4.92% to $21.54. It will be announcing its Q1 on May 1.
Uranium One was up 12.41% to 2.99 a share and Uranium Resources was up 4.24% to 88.5 cents. Paladin Energy (ASX:PDN), however, sank 4.79% to $1.69 a share.
Energy Fuels believes the transaction will create the largest 100% U.S. pure-play uranium producer and one of the largest holders of National Instrument 43-101(“NI 43-101”) compliant U.S. based uranium resources. The company will have 2012 production forecasts totaling greater than 25% of total U.S. estimated production, and measured and indicated resources of 49.8 million lbs of U3O8, plus inferred resources of 17.9 million lbs of U3O8.
Denison said shareholders will receive approximately 1.106 common shares of EFR for each common share of DML owned and will in aggregate own approximately 66.5% of the issued and outstanding common shares of EFR.
Energy Fuels largest shareholders, Dundee Resources Ltd., Pinetree Capital Ltd. and Mega Uranium Ltd., support the deal.