Denison Mines to sell Mongolian interests to Czech company

Denison Mines Corp. announced Thursday it has entered into a share purchase agreement with Uranium Industry A.S. of the Czech Republic.

The transaction will consist of the transfer of subsidiary Denison Mines Mongolia, Ltd.'s shares in the Gurvan Saihan joint venture, which amounts to approximately 85 percent of the project, to Uranium Industry for approximately $20 million.

Denison Mines  said it expects the transaction to close on Sept. 8. With the 85 percent of the joint venture, the operating company, Denison Mines Mongolia, will also fall under Uranium Industry's ownership.
   
"With Denison's continued focus on its Canadian exploration and development projects, we are pleased to have reached an agreement with Uranium Industry for the sale of our Mongolian interests,' Denison President and CEO David Cates said. "Throughout our negotiations, Uranium Industry has shown its strong commitment to developing the uranium mining industry in Mongolia together with its government partner Mon-Atom, LLC. We are proud of the progress that Denison has made throughout the years in Mongolia, and we believe that Uranium Industry is very well positioned to take these assets into development and production."

Upon closing, Denison Mines will be paid $250,000 with the remaining $19.75 million being paid over time.
   
Denison has submitted mining license applications and said it expects the venture's mining to be approved shortly.

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