A friendly takeover of
Australian mining firm White Canyon by Canada’s Denison mines would transfer
ownership of five uranium projects in Utah, according to a Denison release.
The deal would include the
Daneros-Lark Royal mine – the first of its kind in 30 years to be granted a
permit by the Bureau of Land Management – as well as the Geitus, Blue Jay,
Marcy-Look and Thompson sites in the advanced exploration stage and a number of
other prospects.
“The acquisition provides Denison additional
control over its milling schedules and uranium production and will establish
Denison in a new, fourth mining district, near its White Mesa mill, which has
significant potential for immediate resource growth,” said Denison president
and CEO Ron
Hochstein.
Denison previously processed
ore from the Daneros mine at its White Mesa mill. White Canyon, based in Moab,
Utah, owns rights to 15,500 acres in the state’s Red Canyon district.
White Canyon’s directors voted unanimously to
recommend acceptance of the offer, which would pay a 20 percent premium on the
company’s Feb. 18 stock price. Should an affirmative shareholder vote and other
conditions be met, the deal is expected to close in mid-March.