Recall that Hathor announced on March 3, 2008, that it had intersected 11.9 m of 5.29% U3O8 (uranium) in drill hole MWNE-08-12 within its newly named “Roughrider Zone” on its 90%-owned Midwest NorthEast uranium property (see the February 28, 2008 and March 4, 2008 Metals Morning Notes). Subsequently, Hathor announced other highly encouraging drill results from its 2008 winter and summer drilling programs at the Roughrider Zone.

Hathor also has ownership stakes in other highly prospective projects along the eastern margin of the Athabasca Basin including a 40% interest in the Russell Lake property in which Northern Continental Resources Inc. (NCR - TSX-v) owns the remaining 60% interest (Figure 1). The Russell Lake property is located adjacent to Denison Mines Corp.'s (DML - TSX) 60%-owned Wheeler River property where Denison believes that it has discovered a significant McArthur River-type uranium deposit which could contain up to 500 million lbs of U3O8 (see proceeding story on Denison). Historical diamond drilling within the Russell Lake property at the Grayling Zone intercepted uranium mineralization, including 3.45% U3O8 over a 0.3 m section in one hole, and 0.4% U3O8 over a 3.75 m section in another drill hole, located 500 m to the north. We note that the Grayling Zone is only a couple of kilometers from Denison's highly prospective RZone at the Wheeler River project.

Northern Continental and Denison announced last night that they have entered into an agreement in which Denison is to acquire all of the outstanding shares of Northern Continental on the basis of one common share of Denison for every 10.87 share of Northern Continental which is equal to one Northern Continental Share for every 0.0920 share of Denison. Denison is to also exchange all warrants and options of Northern Continental for Denison warrants and options. All told, Denison is to issue approximately 5,038,242 shares to Northern Continental shareholders.

We believe that the above deal has positive implications for Hathor given that Denison is very enthusiastic about its discovery at that R-Zone at the Wheeler River property. We also note that southeast of the Russell Lake property Denison is carrying out exploration work at the Maverick Zone at its 75%-owned Moore Lake project. At Moore Lake, Denison has reported highly encouraging drilling results including 3.20% U3O8 over 6.5 m (part of which returned 5.25% U3O8 over 3.5 m), and 1.23% U3O8 over 8.5 m. Denison has stated that it is very optimistic on its exploration prospects at the Maverick Zone.

We believe that Denison would not have made the above transaction unless it believed that the Russell Lake property had significant exploration potential. Therefore, we believe that Denison's stamp of approval is good for Hathor. We are also pleased that Hathor has secured a partner that is highly experienced in exploration in the Athabasca Basin.

07-05-2009 om 11:30 geschreven door b0g  

Related:

TORONTO, ONTARIO--(MARKET WIRE)--Apr 30, 2009 -- Denison Mines Corp. (Toronto:DML.TO - News)(AMEX:DNN - News)(Other OTC:DNNAV.PK - News) ("Denison" or the "Company") is pleased to announce that it has signed a letter of intent to acquire all of the issued and outstanding shares of Northern Continental Resources Inc. ("Northern") in an all share transaction by way of a plan of arrangement under the Business Corporations Act (British Columbia).

Related Quotes

Northern holds a 60% interest (Hathor Exploration Limited 40%) in the Russell Lake uranium property located immediately adjacent to Denison's major new Wheeler River uranium discovery in the Athabasca Basin of northern Saskatchewan. Through this transaction, Denison will consolidate, as one contiguous package, its land position between Wheeler River and another important Denison discovery in the Basin, Moore Lake. The Russell Lake property exhibits a number of strong targets.

Pursuant to the proposed plan of arrangement, Denison would acquire Northern on the basis of 0.0920 Denison common shares for each share of Northern (the "Exchange Ratio"). In addition, all outstanding options and warrants of Northern will be exchanged for replacement options and warrants of Denison, the number and exercise price of which will be determined using the Exchange Ratio. The transaction values the Northern shares at $0.206, based on the closing price of the shares of Denison on April 30, 2009 representing a 64.8% premium to the April 30, 2009 closing price of Northern.

07-05-2009 om 11:28 geschreven door b0g  

Mon Apr 27, 2009 5:30pm EDT

(In U.S. dollars, unless noted)

TORONTO, April 27 (Reuters) - Denison Mines (DML.TO) has inked a long-term contract to sell 5 million pounds of uranium over five years beginning in 2011, the company said on Monday.

Denison said in a statement it will sell 1 million pounds of uranium per year from its production facilities in the United States and Canada. It did not identify the customer or the financial terms of the deal.

It said the contracted price is a combination of an escalated base price and published market price indicators at the time of delivery.

"In addition to this new long-term uranium sales contract, Denison has three other long-term sales contracts in place, and ongoing discussions with additional prospective clients," the Toronto-based company said.

Spot uranium oxide prices have been in almost steady decline since topping out at $136 a pound in June 2007. Spot prices this week were $42 a pound.

Shares of Denison eased 5.5 percent to C$1.71 on Monday, but are up 185 percent so far in April.

The company agreed two weeks ago to sell 19.9 percent of itself to Korea Electric Power Corp (015760.KS) (KEPCO) and another 5.1 percent to entities close to Denison Chairman Lukas Lundin. Denison has also agreed to sell 20 percent of its production to KEPCO through 2015.

07-05-2009 om 11:26 geschreven door b0g