The Canadian expert on uranium mining, Denison Mines Corp, whose operations span Canada, Mongolia, the United States and Zambia, is planning to submit an alternative bid for Rockgate Capital Corp. The current standing bid for the firm is CAD26.7 million or USD25.9 million made by Mega Uranium Ltd.
Under the proposal from Denison, Rockgate shareholders would receive 0.192 share of Denison stock for each share owned. The Denison share is priced at CAD0.23 per share, which is 47% higher than its closing price yesterday. This was confirmed by the Toronto based mining firm with an interest in Australia. Previously, it had also announced it would be submitting a bid for Rockgate.
According to Denison CEO Ron Hochstein, a number of Rockgate investors were unhappy with the offer from Mega Uranium. In a statement, he said, "(Denison) welcomed the opportunity given by key Rockgate shareholders to assist in undertaking this offer."
The Denison African portfolio would be expanded with the addition of the Falea project of Rockgate located in mali. Hochstein added that Denison would eventually spin off the Falea project to a separate unit in the long run.
Rockgate conducts mining operatons for copper and uranium. Their share values increased by 32% to CAD0.21 per share at Toronto market close. On the other hand, Vancouver based Rockgate had fallen on hard times, declining in value by 61% this year.
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