Denison Mines has made an offer to acquire a 100% stake in JCU (Canada) Exploration Company, shortly after UEX signed a deal to purchase the business.

JCU is a unit of Overseas Uranium Resources Development (OURD).

It owns uranium project joint venture (JV) interests in Canada. This includes a 10% stake in Denison’s 90%-owned Wheeler River uranium project in Saskatchewan.

The offer from the uranium mine developer includes $32.9m (C$40.5m) in cash for JCU and the assumption of outstanding liabilities of JCU owed to the Japan Atomic Energy Agency.

Last month, JCU reached a definitive purchase agreement with UEX for up to $10.1m (C$12.5m) in cash and the assumption of existing liabilities.

At that time, UEX said the combination of UEX and JCU would create a ‘compelling mid-size uranium development company’ with exposure to near-term uranium production.

Denison said that its binding offer was subject to the completion of definitive documentation, regulatory nod, and the termination of OURD’s existing purchase agreement with UEX.

The firm, however, said that there are no conditions for due diligence on JCU’s assets or securing the financing to fund the purchase price as it already has enough cash to fully fund the deal.

Denison plans to maintain JCU as a corporate subsidiary, allowing it to meet its JV commitments.

JCU also owns a 30% stake in the Cameco-operated Millennium uranium project, a 33.8% ownership interest in the Kiggavik project, and a 34.5% interest in UEX’s Christie Lake project.

The firm also holds a minority stake in eight other grassroots and mid-stage exploration projects within the Athabasca Basin.