The project has probable resources of 109.4 million lb. of uranium dioxide.

“At first glance, Denison’s bid to acquire the remaining 10% of its Wheeler River project would be modestly accretive (+2%), although this does depend on the final scale of future liabilities,” said BMO Capital Markets in a note.

“Further, if successful, the transaction simplifies the ownership of its flagship project as the company continues to make headway derisking the use of ISL mining in the Athabasca.”

“Denison continues to be rated a top-pick in the uranium space largely underpinned by our thesis that recent de-risking work at Wheeler River regarding the ISR mining approach to the ultra-high-grade Phoenix deposit is going under-appreciated by the market,” Haywood Capital Markets said in a note.

“We expect ongoing and future work to further demonstrate the viability of this low-cost mining approach and believe that will translate into more positive movement in DML’s share price.”

Midday Tuesday, Denison’s stock was down 4% on the TSE. The company has a C$1.078 billion market capitalization.

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