Last week, Denison Mines (TSX:DML,AMEX:DNN) announced that it will pay $70 million to acquire Fission Energy (TSXV:FIS), which holds a 60-percent interest in the Waterbury Lake uranium project in the Athabasca Basin. The deal also includes the formation of a new company that will hold a 50-percent interest in the Patterson Lake South property.
Output at Paladin Energy's (TSX:PDN,ASX:PDN) Kayelekera mine in Malawi increased 20.9 percent in the fourth quarter 2012, to 772,280 pounds U3O8 — an all-time quarterly record for the company. Sales of yellowcake from its combined operations, included Langer Heinrich, totaled 2.7 million pounds and generated revenue of $133.9 million for an average sales price of $48.10 per pound.
State-run China Metallurgical Geology Bureau has become the major shareholder in uranium explorer Zeus Resources (ASX:ZEU) by making a $10-million investment for a 32-percent stake in the company. Vast Honour, a private Hong Kong company, has acquired a 31.9-percent share. Zeus Resources has seven uranium exploration projects, many in close proximity to major claims, including Cameco's (TSX:CCO,NYSE:CCJ) Yeelirrie and Toro Energy's (ASX:TOE) Wiluna.
Laramide Resources signed (TSX:LAM) a two-year toll milling agreement with Energy Fuels (TSX:EFR) to process material from Laramide's La Sal II uranium project at Energy Fuels' White Mesa mill. Under the agreement, 20,000 tons of ore will be processed at White Mesa during a test phase that will follow a bulk sample program to confirm metallurgical and mill compatibility. In exchange, Laramide will reimburse Energy Fuels for milling costs and pay a capital charge plus a toll milling fee per ton of ore; the milling fee will be partially based on the long-term uranium price, which was lasted reported at $56.50 per pound U3O8. The bulk sample program gives Laramide the impetus to begin underground development at the project. Positive results would bolster a decision for commercial production.