Reuters reported that shares of Denison Mines were lower after the uranium producer said that it would buy White Canyon Uranium in a AUD 57 million all cash deal.

Denison will pay 24 Australian cents per White Canyon share, a premium of about 20% over the company's closing price on February 18 on the Australian Stock Exchange.

White Canyon owns numerous advanced exploration projects in the Red Canyon region of Utah along with the Daneros mine which has been in production since 2009. Uranium from Daneros is currently processed at Denison's White Mesa mill in Utah.

Toronto based Denison said that the deal will help it establish a new mining district, with potential for immediate growth, near its White Mesa mill. Directors of both boards have recommended that shareholders accept the offer.

Denison also said that it will raise CAD 65 million through a bought deal financing. Shares of Denison were down 2.17% at CAD 3.61 on the Toronto Stock Exchange while White Canyon's Canadian listed shares were up 17.95% at CAD 0.23 on the TSX Venture Exchange.

(Sourced from Reuters)