Denison Mines has announced a further improved proposal for the acquisition of all the issued and outstanding shares of Canadian uranium producer UEX Corporation.

Under the revised offer, UEX shareholders are expected to receive 0.32 shares of Denison in exchange for each UEX share held, indicating an implied price of $0.51 per UEX share.

The announcement forms the latest update in a series of proposals by Denison and its rival Uranium Energy Corporation (UEC) for the acquisition of UEX.

In June this year, UEC initially signed an agreement to acquire all the issued and outstanding common shares of UEX, for a total consideration of up to C$234m ($181m).

Last month, Denison Mines made an offer to acquire UEX at a price greater than that of UEC’s proposal, which the Canadian uranium company considered a ‘Superior Proposal’.

Earlier this month, UEC made a revised proposal to acquire UEX, which implied a transaction price of around C$0.49 ($0.38) per UEX share.

As per the amended UEC proposal, UEX shareholders are expected to receive 0.0890 shares of UEC common stock, in exchange for each UEX share held.

Denison president and CEO David Cates said: “Following the expiration of our previous acquisition proposal, and after internal discussions, including with our legal and financial advisors, Denison decided to make a further premium acquisition proposal to UEX.

“The success of this offer is subject to the board of UEX determining that it is superior to the Amended UEC Agreement and is also subject to UEC’s five-day right to match.

“We note that on August 5th, UEC increased its offer in response to Denison’s superior acquisition proposal of July 22nd and that the UEX board of directors concluded that the amended terms offered by UEC constituted a matching offer – despite the fact it implied a lower UEX price from the perspective of premiums over normalized trading periods.”

Denison said that its revised proposal represents a 7% premium to the price implied by the amended UEC agreement to acquire UEX.

As per the amended UEC agreement, UEX was supposed to conduct a special meeting of securityholders on 9 August 2022, to decide on the ‘Superior Proposal’.

UEX has now re-schedule the securityholders meeting to 15 August 2022.

Cates added: “In making this further offer, we recognize that UEC remains in the ‘driver’s seat’ through its right to match and that our offer may not ultimately prevail.

“That said, we believe that the UEX assets are so complementary to our own portfolio and Athabasca Basin specialisation that it would be short-sighted not to afford another opportunity for both Denison and UEX shareholders to prosper from this combination.”