11:13 AM EDT, 09/24/2024 (MT Newswires) -- (Adds analyst comment and updates shares.)

Denison Mines ( DNN ) said Tuesday it signed an option agreement with a Nasdaq-listed company to be renamed Foremost Clean Energy (FAT.CN), granting Foremost an option to acquire up to 70% of Denison's interest in 10 uranium-exploration properties in northern Saskatchewan's Athabasca Basin.

Under the terms, Foremost would acquire the project stakes after completing direct payments to Denison and funding exploration expenditures with an aggregate value of up to nearly $30 million.

"Denison is pleased to work with Foremost to enhance the potential for discovery on an excellent portfolio of uranium exploration properties that would otherwise receive little attention from Denison with our current focus on development and mining stage projects," said David Cates, Denison's chief executive. "We are impressed with Foremost's leadership team and technical capabilities and are excited to see high-potential exploration work being carried out on these properties in the coming years."

Foremost is required to invest at least $8 million in exploration expenditures to retain any interests in the properties and $20 million in exploration expenditures to fully exercise the option.

Denison will also retain direct interests in the optioned exploration properties and will become Foremost's top shareholder.

National Bank of Canada maintained its outperform rating and $3.50 price target on Denison following the news.

The bank said it expects no major impact to Denison's stock today, citing the immaterial size of the transaction compared to the company's net asset value of $2.85 billion.

Denison shares were last seen up $0.08 to $2.45 on the Toronto Stock Exchange.

Price: 2.45, Change: +0.07, Percent Change: +3.16