Join        Login             Stock Quote

Denison Mines (DNN) Buys Ownership Of 3.6M Units Of International Enexco

 November 29, 2012 03:12 PM

(By Balaseshan) Denison Mines Corp. (NYSEAMEX: DNN) said it has bought ownership of 3.6 million units of International Enexco Ltd. at a price of $0.50 per unit pursuant to a subscription agreement effective as of November 29.

Each unit is comprised of one common share of Enexco and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one common share at a price of $0.60 per share for a period of two years from the date of issuance, subject to acceleration in certain circumstances.

Denison acquired the common shares and warrants that are the subject of this press release as part of a private placement of 4.7 million units. An early warning report in respect of the transaction will be filed on SEDAR.

[Related -Denison Mines (DNN) to Buy JNR Resources]

The common shares and warrants acquired by Denison represent 5.4 million common shares, which is about 13.90% of the issued and outstanding common shares of Enexco after giving effect to the Enexco private placement, assuming the exercise by Denison of the Warrants.

Prior to the closing of the Enexco private placement, Denison did not hold any securities of Enexco. Concurrently with Denison''s purchase of units, Denison acquired the right to appoint one representative to the Board of Directors of Enexco and will be providing technical assistance to Enexco.

Denison will also have the right to participate in future equity offerings of Enexco in order to maintain its pro-rata equity interest up to a prescribed maximum.

[Related -Wall Street Poised To Open Lower; Berkshire Hathaway To Buy Lubrizol Corporation]

Denison has the right to subscribe for additional common shares sufficient to enable Enexco to meet its funding obligations under the Mann Lake Joint Venture Agreement in the event of a shortfall.

In exchange, Denison has agreed to vote its shareholding in favour of Enexco Management''s proposals on matters of routine business and not to tender its shareholding to any take-over bid if Enexco''s Board has not issued a recommendation in favour of the same.

DNN is trading down 0.89% at $1.11 on Thursday. The stock has been trading between $1.03 and $2.07 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageThe Phases of an Investment Idea

Now, before an idea is discovered, the economics behind the idea still exist, but the returns happen in a read on...

article imageLongest SPX Peak to Trough Pullback Since 2012

I have been quiet in this space as of late, but there is nothing like a 34% one-day spike in the VIX to read on...

article imageSP500 Continues to Respect the Range… For Now

With fears increasing that “all may not go well” with Greece over the weekend, markets dropped and gapped read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.