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Denison Acquires 50% of JCU (Canada) Exploration Company, Limited and Increases Effective Interest in Wheeler River to 95%

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Denison Acquires 50% of JCU (Canada) Exploration Company, Limited and Increases Effective Interest in Wheeler River to 95%






Denison Mines Corp.  (TSX: DML) (NYSE American: DNN) is pleased to announce the completion of its acquisition of 50% ownership of JCU (Canada) Exploration Company, Limited from UEX Corporation, for cash consideration of $20.5 million.  Denison’s acquisition of a 50% interest in JCU occurred immediately following UEX’s acquisition of all the outstanding shares of JCU from Overseas Uranium Resources Development Co., Ltd. for cash consideration of $41 million.


David Cates, President and CEO of Denison, commented, “Denison is pleased to have acquired a 50% interest in JCU – which holds a unique and valuable portfolio of strategic Canadian uranium interests, including a 10% interest in Denison’s flagship Wheeler River project.  We believe there is considerable value in JCU’s portfolio of assets and that this transaction is highly accretive for Denison shareholders.


In addition to consolidating an effective 95% interest in Wheeler River, this acquisition expands Denison’s leading Athabasca Basin development portfolio to include additional important Canadian uranium development projects such as Millennium and Kiggavik.”


JCU’s Project Portfolio


JCU holds a portfolio of twelve uranium project joint venture interests in Canada, including a 10% interest in Denison’s 90% owned Wheeler River project, a 30.099% interest in the Millennium project (Cameco Corporation 69.901%), a 33.8123% interest in the Kiggavik project (Orano Canada Inc. 66.1877%), and a 34.4508% interest in the Christie Lake project (UEX 65.5492%).


Term Loan to UEX


Pursuant to Denison’s agreement with UEX (see press release dated June 15, 2021), Denison provided UEX with an interest-free 90-day term loan of $40.95 million (the “Term Loan”) to facilitate UEX’s purchase of JCU from OURD.  On the transfer of 50% of the shares in JCU from UEX to Denison, $20.5 million of the amount drawn under the Term Loan was deemed repaid by UEX.  Accordingly, UEX has currently drawn $20.45 million under the Term Loan, which is due to Denison by November 1, 2021.


UEX may extend the Term Loan maturity by an additional 90 days (to January 30, 2022), in which case interest will be charged at a rate of 4% from the date of the initial advance under the Term Loan (August 3, 2021) until maturity.  All of the shares of JCU owned by UEX will be held by Denison as security against the Term Loan pursuant to a pledge agreement until the Term Loan is repaid in full. The Term Loan is subject to certain customary terms and conditions and contains standard events of default that protect Denison.


Further details of the terms of the transaction are described in Denison’s June 15, 2021 press release and under Denison’s profile at and


About Denison


Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. The Company has an effective 95% interest in its flagship Wheeler River Uranium Project, which is the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region of northern Saskatchewan. Denison’s interests in Saskatchewan also include a 22.5% ownership interest in the McClean Lake joint venture, which includes several uranium deposits and the McClean Lake uranium mill that is contracted to process the ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest Main and Midwest A deposits, and a 66.90% interest in the Tthe Heldeth Túé and Huskie deposits on the Waterbury Lake property. Each of Midwest Main, Midwest A, THT and Huskie are located within 20 kilometres of the McClean Lake mill. 


Through its 50% ownership of JCU (Canada) Exploration Company, Limited (“JCU”), Denison also holds interests in various uranium project joint ventures in Canada, including the Millennium project (JCU 30.099%), the Kiggavik project (JCU 33.8123%) and Christie Lake (JCU 34.4508%).


Denison is also engaged in mine decommissioning and environmental services through its Closed Mines group (formerly Denison Environmental Services), which manages Denison’s Elliot Lake reclamation projects and provides post-closure mine care and maintenance services to a variety of industry and government clients.


Posted August 3, 2021

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