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TORONTO - Denison Mines Corp. (TSX:DML) (NYSE American:DNN), a uranium company with a market capitalization of $2.23 billion, announced Monday it has executed an agreement with Skyharbour Resources Ltd. (TSXV:SYH) to acquire interests in claims adjacent to its flagship Wheeler River uranium project. The stock has surged 72.77% over the past six months, according to InvestingPro data.
Under the agreement, Denison will pay Skyharbour $18 million in total consideration, including a $2 million upfront cash payment and $16 million in deferred consideration payable before December 31, 2025. The transaction is expected to close by December 21, 2025.
The Russell property will be divided into four joint ventures: Russell Lake (20% Denison ownership), Getty East (30%), Wheeler North (49%), and Wheeler River Inliers (70%). Denison can increase its ownership in Wheeler North and Getty East to 70% through earn-in options requiring additional exploration expenditures and cash payments. While Denison's current financial health score is rated as "WEAK" on InvestingPro, the company maintains strong liquidity with a current ratio of 11.97, indicating its liquid assets substantially exceed short-term obligations.
"As Denison nears receipt of final regulatory approvals for the Phoenix In-Situ Recovery mine proposed for our flagship Wheeler River property, we are also making measured investments in our project pipeline," said David Cates, President and CEO of Denison.
The transaction strengthens Denison's regional presence in Saskatchewan's Athabasca Basin with claims that will benefit from the joint exploration expertise of both companies. Denison will become the operator of Wheeler North and Wheeler River Inliers upon closing, while Skyharbour will remain the operator of Russell Lake and Getty East. Despite not being profitable over the last twelve months, Denison operates with a moderate debt level, with a debt-to-equity ratio of 1.49.
The deal requires customary approvals, including from the TSX Venture Exchange. It will be considered a Reviewable Transaction as David Cates, Denison's President and CEO, is also a director of Skyharbour.
The information in this article is based on a press release statement from Denison Mines.
In other recent news, Denison Mines Corp. is facing a judicial review application filed by the Peter Ballantyne Cree Nation. The application challenges the provincial ministerial approval of Denison's Wheeler River uranium project, claiming insufficient consultation with the Indigenous nation. The Peter Ballantyne Cree Nation is seeking to have the decision sent back to the Saskatchewan Minister of the Environment for reconsideration. Meanwhile, in a separate development affecting the uranium market, Kazatomprom, the world's largest uranium producer, has lowered its production forecast for 2026. This adjustment in production targets was noted by Scotiabank analyst Orest Wowkodaw as potentially beneficial for uranium markets, as it indicates future production may be lower than previously anticipated. These developments are part of the recent news impacting the uranium sector and companies like Denison Mines.
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