A ROTH Capital Partners report covers the terms of
the proposed transaction and the impact on this company.
In a Sept. 6 research note, Joe Reagor, a ROTH Capital Partners analyst,
reported Denison
Mines Corp. (DML:TSX; DNN:NYSE.MKT) agreed to acquire Cameco's 24%
interest in the Wheeler River uranium project for 24.6 million Denison
shares. The shares were valued at $0.65 apiece, for a total of $16 million.
That amount compares to $94 million, the difference between the values
ROTH attributes to Denison's shares pre and post acquisition, $392.3 million
and $486.4 million, respectively, Reagor pointed out.
Because the Toronto-headquartered producer "paid a below market
price," for the stake, noted Reagor, ROTH increased its target price on
the company to US$1.20 per share from US$1.10. Denison is currently trading
at around US$0.48 per share.
The deal, which Reagor described as "accretive," will boost
Denison's ownership in Wheeler River to 90%, assuming the other partner of
the joint venture, JCU Exploration, does not exercise its right of first
refusal to acquire a prorated portion of Cameco's interest, which would
amount to about 3.16%. Should it do so, Denison's ownership of the project
would be roughly 86.48%.
Reagor concluded the report by adding the transaction should benefit
Denison shareholders because they will have a "larger percentage of
future resource increases as the company continues to explore the
project."
ROTH maintains its Buy rating on Denison.
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Disclosures from ROTH Capital Partners, Denison Mines Corp., Company
Note, Sept. 6, 2018
Regulation Analyst Certification ("Reg AC"): The research
analyst primarily responsible for the content of this report certifies the
following under Reg AC: I hereby certify that all views expressed in this
report accurately reflect my personal views about the subject company or
companies and its or their securities. I also certify that no part of my
compensation was, is or will be, directly or indirectly, related to the
specific recommendations or views expressed in this report.
ROTH makes a market in shares of Denison Mines Corp. and as such, buys
and sells from customers on a principal basis.
Shares of Denison Mines Corp. may be subject to the Securities and
Exchange Commission's Penny Stock Rules, which may set forth sales practice
requirements for certain low-priced securities.
ROTH Capital Partners, LLC expects to receive or intends to seek
compensation for investment banking or other business relationships with the
covered companies mentioned in this report in the next three months.
