Uranium exploration and development company Denison Mines has made an improved offer to acquire Canadian uranium producer UEX.

According to the revised bid, UEX shareholders would receive 0.32 shares of Denison for each share held in UEX. This implies a consideration of around C$0.51 ($0.38) per UEX share.

The announcement comes days after US-based rival Uranium Energy (UEC) revised its offer price to acquire UEX.

As per UEC’s sweetened offer, UEX shareholders would receive 0.0890 shares of UEC common stock for each UEX share held.

Denison said in a statement: “Denison’s Acquisition Proposal represents a 7% premium to the price implied by the amended arrangement agreement between UEX and Uranium Energy Corp dated August 5 2022, based on the one-day volume weighted average price on August 8 2022, and a 9% premium to the 20-day volume weighted average price implied by the Amended UEC Agreement.”

Denison president and CEO David Cates said: “Following the expiration of our previous acquisition proposal, which equated to a premium over the Amended UEC Agreement on a ten-day and 20-day volume weighted average price basis, and after internal discussions, including with our legal and financial advisers, Denison decided to make a further premium acquisition proposal to UEX.”

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In accordance with the arrangement agreement signed with UEC, UEX notified UEC that it considers the offer of Denison to be a ‘superior proposal’.

UEC has the option to further amend the terms of the arrangement agreement to acquire UEX within five business days, from receipt of UEX’s notice.

With the purchase of UEX, Denison will receive a 100% stake in JCU (Canada) Exploration Company, which owns 12 uranium project joint venture interests in Canada.