URANIUM: Denison buys Cameco's Wheeler River share

Wheeler River might be the next uranium producer in Saskatchewan. (Image: Denison Mines)

SASKATCHEWAN - Denison Mines Corp. has struck a deal to acquire the 24% interest in the Wheeler River uranium project currently held by Cameco Corp. Denison will issue approximately 24.6 million shares at a deemed price of $0.65 per share, making the transaction worth about $16 million.

The arrangement will give Denison a 90% interest in Wheeler River, the largest undeveloped uranium deposit in the eastern Athabasca Basin. The balance will be held by JCU (Canada) Exploration Co. If JCU exercises its right of first refusal, Denison's share would become 86.84%.

Denison president and CEO David Cates said, "We are eager to continue advancing the project towards a development decision - with the next step being the planned completion of a pre-feasibility study before the end of the third quarter."

The Wheeler River property hosts the unconformity-hosted Phoenix and basement-hosted Gryphon deposits. Together the deposits have an indicated mineral resource of 132.1 million lb. of uranium oxide at an average grade of 3.3%. The combined inferred resource is 3.0 million lb. of uranium oxide at 1.7%. The project is located along the road and power line that runs between Cameco's McArthur River mine and Key Lake mill complex.

Additional information is available at www.DenisonMines.com.