The transaction will see the creation of a new company, to be named Denison Energy, with an expected market value of about C$900m.
The existing shareholders of Denison Mines and Fission Uranium will equally own the new company.
The new company will consolidate Fission’s 100% owned PLS Project and Denison’s 60% owned Wheeler River Project and Denison’s interests in the Midwest, McClean Lake, Waterbury Lake, Mann Lake, and Wolly projects, as well as Denison’s strategic 22.5% ownership interest in the McClean Lake Mill.
Fission shareholders will receive 1.26 shares of Denison for each share they hold plus C$0.0001 per share in cash.
The proposed transaction is subject to regulatory and shareholder approvals.
Fission Uranium chairman & CEO Dev Randhawa said: "This merger will create the uranium industry’s leading exploration and development company at a time when the sector is poised for growth."
Denison Mines executive chairman Ron Hochstein said: "The continued exploration success at our Phoenix deposit and Gryphon discovery, in combination with the discovery and exploration success of the world class Triple R deposit puts the combined company in an incredibly strong strategic position, with the most significant development portfolio in the world."
Denison Mines has interests in exploration and development projects in Canada, Zambia, Mali, Namibia and Mongolia.