Denison Mines (DNN) said Wednesday it has agreed with Cosa Resources to form three uranium exploration joint ventures in the Athabasca Basin region of northern Saskatchewan.
Under the terms of the agreement, Cosa will acquire a 70% interest in Denison's 100%-owned Murphy Lake North, Darby, and Packrat properties in exchange for 14.2 million Cosa common shares representing a 19.95% stake in Cosa post-transaction, $2.25 million in deferred equity and a $6.5 million commitment to exploration.
Cosa will serve as the project operator, with Denison will keep a 30% interest in the Murphy Lake North, Darby, and Packrat properties and becoming Cosa's largest shareholder.
Denison will also receive a 2% net smelter royalty, or NSR on Darby and Packrat, and a 0.5% NSR on Murphy Lake North.
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