The Zambian Competition and Consumer Protection Commission has approved the sale of Denison’s wholly owned subsidiary, Rockgate Capital Corp., which holds all of Denison’s Africa-based uranium interests, to GoviEx Uranium, the CSE-listed junior.
With the approval, GoviEx Uranium expects to conclude the transaction by 10 June 2016. But this will be subject to the receipt of all other required consents and approvals, as well as satisfaction of other conditions expected from a transaction of this nature.
Should the transaction go as planned, it will mark the birth of 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.