Denison Renegotiates Provisions Of The McClean Project
Loan
JANUARY 25, 2001 - 16:31 EST
TORONTO, ONTARIO--Denison Mines Limited announced today that the
loan agreement with Cogema Resources Inc. has been amended. The
amendments provide for an extension of the term of the loan
facility from December 31, 2002 to December 31, 2005, which is
further extended to December 31, 2010 if a production decision on
the Midwest project has been taken prior to the end of 2005. At
the expiry of the term, the loan balance must be reduced by 20%
per year and interest payments made monthly.
As part of this agreement, Denison has the right to prepay any
amount and redraw on 45 days' notice all such prepayments together
with the interest, at bank prime plus 1%, not incurred as a result
of all such prepayments. Denison prepaid $12 million in November
2000 as part of interim arrangements pending completion of the
detailed amendments and thereby reduced the Company's interest
costs while at the same time maintaining its access to these funds
as it may require. The loan balance will be approximately $53
million on January 31, 2001 after applying receipts from all
fourth quarter uranium sales.
Denison is also pleased to announce that it has executed an
agreement for Denison Environmental Services to perform all the
services for the five closed mine sites of Rio Algom in Elliot
Lake, Ontario. The agreement has an initial term of five years and
includes all monitoring, effluent treatment, maintenance, data
storage and reporting activities associated with the five closed
mine sites.
In Saskatchewan, the first oil well drilled in which Denison has
earned a 50% interest is producing at 5 - 20 barrels of oil per
day from a vertical section. Consideration of completing a
horizontal leg into the producing zone is underway. Drilling of an
exploration well in another prospect is commencing today.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Denison Mines Limited
E. Peter Farmer
President and Chief Executive Officer
(416) 979-1991 Extension 231
www.denisonmines.com |
