09:47 AM EST - Denison Mines Corp. : announced that it has entered into a non-binding memorandum of understanding with Korea Electric Power Corporation or KEPCO. As per the deal, KEPCO will execute a proposed off-take agreement to purchase 20 per cent of Denison's uranium production and acquire by private placement approximately 58 million common shares of Denison representing 19.9 per cent of the post-transaction shares outstanding for gross proceeds of $75.4 million. The terms of the proposed agreement also stipulate that entities nominated by or affiliated with Denison's chairman, Lukas Lundin, will acquire about 15 million common shares for additional gross proceeds of $19.5 million. The share placement issue price of $1.30 per share represents a 15-per-cent premium to the 30-day moving average price prior to the execution of the memorandum. Proceeds will be used to reduce bank debt and to advance development projects. The company noted that the off-take agreement will provide for deliveries commencing in 2010 with minimum deliveries of 510,000 to 690,000 pounds of uranium per year from 2010 to 2015. KEPCO has the right to appoint two directors to Denison's board of directors and a right of first offer to acquire up to 20 per cent of any assets Denison acquires with a partner or sells. These transactions are subject to the completion of due diligence by KEPCO, execution and delivery of definitive agreements on or before June 15, 2009 and receipt of certain regulatory approvals. Denison Mines Corp.
shares T.DML are trading up $0.10 at $1.40.
