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    Home » News » Overseas Uranium Shareholders agree to sale of JCU Exploration

    Overseas Uranium Shareholders agree to sale of JCU Exploration

    The remaining shares will change hands to UEX Corporation now.

    Ibrahim Al-TarikMay 10, 2025



    UEX Corporation \[UEX-TSX; UEXCF-OTC\] has been informed that the shareholders of Overseas Uranium Resources Development Co., Ltd. (OURD) have agreed to sell OURD's wholly owned subsidiary, JCU (Canada) Exploration Company, Limited, to UEX. UEX will acquire 100% of JCU's shares from OURD by paying C $ 41 million and assuming JCU's existing liabilities (subject to the terms of the share purchase agreement and amendment agreement).

    The transaction is expected to close by August 3, 2021. UEX has committed to maintaining JCU as a subsidiary in order for JCU to meet its existing joint venture obligations. UEX has a binding agreement with Denison Mines Corp. \[DML-TSX; DNN-NYSE American\] in which UEX agrees to sell 50% of JCU shares to Denison for C $ 20.5 million upon completion of the JCU transaction. The main terms of the UEX-Denison transaction are as follows.

    Denison has agreed to provide UEX with a three-month interest-free loan of up to C $ 41 million to enable UEX to purchase 100% of the shares in JCU. UEX and Denison will enter into a shareholders' agreement governing the management of JCU. UEX will be the manager of JCU as long as Denison owns no more than 50% of the shares in JCU. A total of C $ 20.5 million of the amount drawn under the loan will be repaid when UEX transfers 50% of the JCU shares to Denison upon completion of the JCU transaction. UEX can extend the loan for an additional three months. In this case, interest of 4% will be charged from the date of the first disbursement of the loan until the due date.

    All JCU shares owned by UEX are held by Denison as security for the term loan under a pledge agreement until the term loan is repaid in full. The term loan is subject to certain customary conditions and includes standard default events that protect Denison. In the event that the share purchase agreement is terminated, Denison and UEX have agreed to give the other party the opportunity to participate on a 50/50 basis in subsequent offers relating to an alternative acquisition of JCU.

    Roger Lemaitre, President and CEO of UEX, said: "The approval of the transaction by OURD's shareholders is a historic day for our company. UEX shareholders have received a strengthened portfolio of world-class uranium development projects that have growth and production potential over the next cycle Our assets, combined with our new partnership with Denison on the JCU projects, make UEX a unique uranium investment opportunity that has a strong and sustainable portfolio of exploration, development and future production opportunities in the Athabasca Basin and elsewhere in Canada has.

    The JCU assets position UEX well and complement our existing portfolio of assets which, together, can grow into greater portions of our business over time as the market, uranium price and contract cycle signal the need for more uranium supply. " UEX is a Canadian uranium and cobalt exploration and development company involved in an exceptional portfolio of uranium projects.

    VerkaufKanadaUran





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