HomeNewsGoviEx gains approval to acquire Denison’s African uranium assets

GoviEx gains approval to acquire Denison’s African uranium assets

The approval has been granted by the Zambian Competition and Consumer Protection Commission which specifically allows the transaction to be completed that will see GoviEx acquire Denison’s wholly owned subsidiary, Rockgate Capital Corp., which holds all of Denison’s Africa-based uranium interests.

Having received approval from the Zambian Competition and Consumer Protection Commission, GoviEx now expects the closing of the transaction to occur on or about 10 June 2016, subject to the receipt of all other required consents and approvals, as well as the satisfaction of other conditions customary for a transaction of this nature.

The transaction is expected to create a leading Africa-focused uranium development company. After its completion GoviEx will control one of the largest uranium resource bases among publicly listed development companies, with combined measured and indicated resources of 124.29 million pounds (Mlbs) U3O8, plus Inferred resources of 73.11 Mlbs U3O8.

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 also will include Denison’s Falea project, an advanced exploration-stage project in Mali, and the exploration-stage Dome project in Namibia.

Under the terms of the transaction, GoviEx will acquire Denison’s wholly owned subsidiary, Rockgate Capital Corp., which holds all of Denison’s Africa-based uranium interests in exchange for approximately 56.1 million shares of the company plus approximately 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 its shares on a fully-diluted basis.

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