Denison Mines has made a formal takeover bid for all of Rockgate’s outstanding common shares, which the Rockgate’s board of directors determined constitutes a Superior Proposal for the purposes of the arrangement agreement.
Mega renounced its rights under the arrangement agreement following Denison bid consideration its impact on Rockgate, including the increased transaction costs anticipated be incurred by Rockgate, to propose to revise the terms of the merger to match the bid.
In accordance with its terms and simultaneously paid the $1m termination fee to the Mega Uranium, Rockgate also dismissed the arrangement agreement.
Mega Corporate Affairs executive vice president Richard Patricio said that the company will continue to make disciplined investment decisions while the changing fundamentals of the deal no longer represented a comfortable value proposition for Mega.
"Going forward, we have identified several other opportunities which fit within our model of owning quality uranium projects through direct property ownership or strategic equity investments," Patricio added.
"Mega intends to proceed with the special meeting of its shareholders on September 30, 2013 to consider the proposed 1-for-10 consolidation of the Company’s common shares and name change to "Uranium Capital Corporation."
