Denison Mines Corp. (TSX:DML,AMEX:DNN) announced that it will acquire Fission Energy Corp. (TSXV:FIS), whose assets include a 60-percent interest in the Waterbury Lake uranium project and interests in two Namibian joint ventures. As a condition of the acquisition, a select number of Fission’s assets will be spun out into a new company; this new company’s assets will include a 50-percent interest in the Athabasca Basin-based Patterson Lake South property.
As quoted in the press release:
Under the terms of the Binding LOI, Denison has agreed to offer shareholders of Fission 0.355 shares of Denison for each share of Fission held, conditional upon, among other things, certain assets of Fission being spun out to a new company (“NewCo”) to be held pro rata by current Fission shareholders (collectively, the “Transaction”).
The Transaction values the Assets at approximately $70 million based on the closing price of Denison as of January 15, 2013. Upon completion of the Transaction, shareholders of Fission will own approximately 11% of Denison.