#Canada #Toronto #Denison Mines #Cosa Resources #uranium exploration

Denison Mines Corp. and Cosa Resources Join Forces for Uranium Exploration Ventures

Denison Mines Corp. has officially announced its collaboration with Cosa Resources Corp. to embark on an exciting journey in uranium exploration. The recently executed agreement outlines the formation of three joint ventures aimed at exploring the rich uranium potential in the eastern region of the Athabasca Basin in northern Saskatchewan.

Overview of the Agreement

Under the terms of the agreement, Cosa will acquire a 70% stake in Denison's wholly-owned properties: Murphy Lake North, Darby, and Packrat. In exchange, Denison will receive approximately 14.2 million common shares of Cosa, $2.25 million in deferred equity, and a commitment of $6.5 million directed toward exploration activities on the identified properties. This strategic move not only expands the operational footprint of both companies but also enhances Denison's exposure to significant uranium discoveries.

Strategic Commentary

The President and CEO of Denison, David Cates, expressed enthusiasm for this collaboration, stating that it reflects a mutual benefit that aligns with the company’s focus on core mining and development projects. By partnering with Cosa, Denison aims to leverage their expertise and previous experience to advance exploration efforts effectively on these promising properties. Cates highlighted the familiarity of Cosa's management team with the geology of the properties and their technical capabilities, which are essential for successful exploration.

Transaction Highlights

The agreement’s structure is designed to incentivize exploration, with specific stipulations requiring Cosa to invest the agreed-upon $6.5 million in exploration expenditures to maintain control of the Murphy Lake North and Darby properties. Denison will receive meaningful immediate compensation including:

• - 14,195,506 Cosa common shares, translating to approximately 19.95% ownership of Cosa following the transaction.
• - Deferred consideration comprising $2.25 million in additional Cosa common shares.
• - A 2% Net Smelter Royalty on both the Darby and Packrat properties, along with a 0.5% NSR on Murphy Lake North.

Denison will retain a 30% interest in the properties and holds the status of Cosa’s largest shareholder, coupled with strategic rights for potential future increase of ownership.

Joint Venture Formation

Upon the agreement’s closure, Denison and Cosa will establish a joint venture for each property, with Cosa taking on the role of project operator. Denison, retaining a significant minority interest, will still have significant participatory rights, including the right to nominate directors to Cosa's board based on its ownership percentage.

Future Exploration Plans

The execution of this agreement is subject to standard regulatory approvals, but both companies are optimistic about the opportunities that lie ahead. Cosa plans to channel resources into initial drilling activities, leveraging modern geophysical technologies to identify and explore high-priority mineralization areas within their joint venture properties.

The collaboration is a landmark moment for both companies, combining Denison’s rich history in uranium mining with Cosa’s ambitious exploration targets, and it represents a significant step forward in addressing the growing demand for uranium amidst global energy transitions.

About the Companies

Denison Mines Corp. is deeply entrenched in the uranium industry, concentrating its efforts within the Athabasca Basin, a region acknowledged for its high-grade uranium deposits. With an extensive portfolio that includes the flagship Wheeler River Uranium Project, Denison is well-positioned to capitalize on future market opportunities.

Cosa Resources, on the other hand, is a more recent entrant into the uranium exploration arena, focusing on underexplored regions within Saskatchewan. Their management team's prior successful interstate projects lends credence to their operational potential.

In summary, the integration of Denison’s robustness in uranium mining with Cosa's exploration zeal holds promise for both companies as they navigate the evolving landscape of the uranium market.