Denison Mines Corp (DNN)

[SuperSquirrel]

Denison Mines Attempted Takeover of Australia's OmegaCorp Viewed Favorably

Posted on Jun 26th, 2007 with stocks: DNN, EMU, UAMNF.PK
http://energy.seekingalpha.com/article/39438

FP Trading DeskFP Trading Desk submits: With Energy Metals Corp. (EMU) and UraMin Inc. (UAMNF.PK) representing some of the more recent uranium names being taken out by competitors, Denison Mines Corp. (DNN) has renewed its failed attempt to make a deal of its own.

Denison is again trying to acquire all of OmegaCorp Ltd. through a C$121-million all cash offer. The price tag is 13% higher than Denison’s most recent bid for the Australian miner, which saw it acquire a 33% stake.

The deal would see Denison pay C$13.20 per pound of uranium (U3O8), which Omega has 13.7 million inferred resources of, Raymond James analyst Bart Jaworksi said in a research note.

Despite what he considers a relatively expensive price, Mr. Jaworksi thinks it is justified given the low technical risk of Omega’s flagship Kariba project in Zambia. He thinks the deal will benefit shareholders, particularly given possible exploration upside at Kariba.

Mr. Jaworksi reiterated his “outperform” rating and C$16.50 price target on Denison shares, which represents upside of more than 20%.


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