Skyharbour Resources (TSX-V: SYH) would like to bring to your attention a news release issued yesterday by International Enexco (TSX-V: IEC) and Denison Mines (TSX: DML). The full news release is posted below. Skyharbour retains an ownership interest in two uranium projects in the Athabasca Basin in northern Saskatchewan. The Mann Lake property is located on the eastern side of the Basin and is adjacent to the Mann Lake Joint Venture operated by Cameco (52.5%) with partners International Enexco (30%) and AREVA (17.5%), which recently intersected 2.31% eU3O8 Over 5.1 Metres Including 10.92% eU3O8 Over 0.4 Metres (see International Enexco News Release dated March 10th 2014).
Athabasca Basin, Saskatchewan Property Claims Map:
Denison Mines Corp. (TSX: DML) has signed a non-binding letter of intent with International Enexco Ltd., (TSX-V: IEC) pursuant to which Denison will acquire all of the issued and outstanding common shares of International Enexco by way of a plan of arrangement. Under the terms of the Transaction, IEC shareholders will exchange each share of IEC for 0.26 of a Denison common share (a "Denison Share") and a share or a portion of a share (each a "Spinco Share") in Enexco International Inc. and/or such other subsidiary holding directly or indirectly 100% of IEC's Contact Copper Project and any other US mineral properties owned by IEC. Upon completion of the transaction, it is anticipated that IEC shareholders other than Denison will own approximately 2.1% of Denison.
IEC's principal uranium assets include a 30% interest in the Mann Lake exploration project, and a 20% interest in the Bachman Lake Joint Venture. The Mann Lake exploration project is located 25 km southwest of the McArthur River mine and is on trend between Cameco Corp.'s Read Lake project and Denison's 60% owned Wheeler River project in Saskatchewan's Eastern Athabasca Basin. The Mann Lake project is a joint venture between Cameco Corp. (52.5%) as operator, IEC (30%) and AREVA Resources Canada (17.5%). In January, an 11,000 metre diamond drill program commenced at Mann Lake with an approximate cost of Cdn$2.9 million. Cameco Corp. is the operator. IEC has reported that the highlight of the program to date is the intersection of 2.31% eU3O8 over 5.1 metres in drill hole MN-060, which included a 0.4 metre interval averaging 10.92% eU3O8. Bachman Lake is operated by Denison (80%) and is one of Denison's highest priority uranium exploration projects due to its location in the southeast Athabasca Basin and the presence of strong conductors, graphitic basement, and sandstone alteration.
"Denison continues to focus on becoming the preeminent exploration company in the Athabasca Basin, and we believe that the acquisition of IEC represents another logical step towards achieving that goal," commented Lukas Lundin, Chairman of Denison.
Denison currently owns 3.6 million common shares of IEC, representing approximately 8.4% of the issued and outstanding shares of IEC. Denison also owns 1.8 million common share purchase warrants of IEC.
Denison expects to acquire IEC by way of a plan of arrangement between IEC and its shareholders. Denison will acquire all of the issued and outstanding IEC Shares on the basis of 0.26 of a Denison Share for each IEC Share. IEC's shareholders will also receive a pro rata distribution of the Spinco Shares. Any outstanding warrants and options of IEC as of completion of the Transaction will be exchanged for options and warrants of Denison, adjusted by (i) the exchange ratio for common shares, and (ii) the final structure of the Transaction. Any IEC options so exchanged for options of Denison will not expire solely as a result of the holder thereof ceasing to be employed or engaged as a consultant, officer or director of IEC for a period not exceeding 90 days following completion of the Transaction. Any IEC warrants so exchanged for warrants of Denison will expire in accordance with their current expiry dates.
The transactions contemplated by the Letter of Intent are subject to the following conditions:
a. the entering into of a definitive arrangement agreement in respect of the Transaction (the "Arrangement Agreement") by Denison and IEC. The Arrangement Agreement will describe the terms and conditions upon which the Transaction will be completed b. the entering into of the Arrangement Agreement will be subject to the prior approval of the boards of directors of each of Denison and IEC; c. shareholder approval by IEC's shareholders; and d. approval of the Toronto Stock Exchange to the issuance of the Denison Shares as part of the transaction.
The Letter of Intent also provides for, among other things, a non-solicitation covenant on the part of IEC and a right in favour of Denison to match any superior proposal. IEC has also agreed to use its best efforts to cause each of IEC's directors, officers and significant shareholders to execute support agreements to vote their shares in favour of the Transaction.