DENISON MINES LIMITED AND COMPAGNIE MINIERE
DENISON MINES LIMITED AND COMPAGNIE MINIERE TORONTO, April 3 /PRNewswire/ -- Denison Mines Limited announced
today that Denison and Total Compagnie Miniere of France have entered into an agreement which will permit the Midwest and McClean Lake uranium projects to be developed as complementary uranium operations. The agreement includes provision for the mining, milling and marketing of uranium concentrates to customers of Total and Denison on a more cost effective and efficient basis. It is intended that if production decisions are made, the Midwest ore may be treated utilizing milling facilities at McClean Lake which will reduce the potential environmental impact.
Denison owns a 45 percent interest in the Midwest joint venture and Total, through a wholly owned subsidiary, owns 100 percent of the McClean Lake uranium reserves. The environmental impact statements for Midwest and McClean Lake projects are presently in the public review process. Under the arrangement, which will be in addition to the previously announced acquisition by Total of 70 percent of Denison's interest in its Koongarra reserves, Denison will acquire a joint venture interest in McClean Lake of about 22 percent and Total has agreed to arrange the funds necessary for the development of McClean Lake. Total will acquire a right to 70 percent of Denison's share of Midwest production. Subject to certain conditions, this production right could be converted to the equivalent of a 31.5 percent interest in Midwest. At McClean Lake and Midwest the mineable reserves are at least 650,000 tons at an average grade of 3.17 percent containing a total of 45 million pounds of U30, and 360,000 tons at an average grade of 4.5 percent containing a total of 36 million pounds, respectively. The closing of the transaction will occur upon the fulfillment of several conditions and the obtaining of necessary consents. Bill James, Denison's president and chief executive officer, said that "if we are able to complete this transaction and the decisions to produce uranium at McClean Lake and Midwest are made, Denison will be able to develop its Saskatchewan uranium interests. The development, with production of up to 6 million pounds of U30, per annum utilizing a single larger milling facility, will result in significant efficiencies." -0- 4/3/92 /CONTACT: Bill James of Denison Mines Limited, 416-865-1991/ (DEN.) CO: Denison Mines Limited ST: Ontario IN: MNG SU: SM -- NY009 -- 4714 04/03/92 08:46 EST
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|Date:||Apr 3, 1992|
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