Denison Enters Three Year Management Services Agreement with Uranium Participation Corp.

Published: March 8, 2016 |

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Denison Mines Corp. has entered into a new three year agreement (MSA) to provide management services to Uranium Participation Corporation (UPC). The MSA will take effect on April 1, 2016, at the conclusion of the current MSA between UPC and Denison.

“Denison is very pleased to have reached an agreement with UPC to continue as the company’s manager for another three years. We are proud of the relationship that Denison has nurtured with UPC, since UPC’s inception, and we look forward to continuing to represent UPC and the entire uranium industry in the coming years. We believe there is a bright future for nuclear energy and the uranium industry and we are honoured to act as a steward for both UPC and the industry,” said David Cates, president and CEO of Denison and UPC.

Under the terms of the MSA, UPC appoints Denison to act as the manager of the corporation and grants the manager the authority and responsibility to manage and administer the business and affairs of UPC, subject to the oversight and applicable approvals from the board of directors. The manager is responsible for providing the corporation with a chief executive officer, chief financial officer and corporate secretary, as well as any other position necessary to carry out its responsibilities for the administration and oversight of UPC’s uranium inventories, as well as UPC’s financial reporting, investor relations and marketing activities.

The fees payable to Denison for providing these services to UPC under the MSA, will be as follows:

• a base fee of C$400,000 per annum, payable in equal quarterly installments;

• a variable fee equal to (a) 0.3% per annum of UPC’s total assets in excess of C$100 million and up to and including C$500 million; and (b) 0.2 percent per annum of UPC’s total assets in excess of C$500 million;

• a fee, at the discretion of the board, for on-going monitoring or work associated with a transaction or arrangement (other than a financing, or the acquisition of or sale of U3O8 or UF6); and

• a commission of 1.0 percent of the gross value of any purchases or sales of U3O8 or UF6, or gross interest fees payable to UPC in connection with any uranium loan arrangements.

The MSA takes effect on April 1, 2016 for a three year term ending March 31, 2019.

About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan. Including its 60 percent owned Wheeler River project, which hosts the high grade Phoenix and Gryphon uranium deposits, Denison’s exploration portfolio consists of numerous projects covering over 390,000 hectares in the eastern Athabasca Basin. Denison’s interests in Saskatchewan also include a 22.5 percent ownership interest in the McClean Lake joint venture, which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17 percent interest in the Midwest deposit and a 61.55 percent interest in the J Zone deposit on the Waterbury Lake property. Both the Midwest and J Zone deposits are located within 20 kilometers of the McClean Lake mill. Internationally, Denison owns 100 percent of the Mutanga project in Zambia, 100 percent of the uranium/copper/silver Falea project in Mali, and a 90 percent interest in the Dome project in Namibia.

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