Denison Mines Corp (DNN) Stock Price had a drop of 3.85% as the market cooled down after a sudden 10.2% increase in stock price the day before as DNN confirmed that it has completed a Funding Agreement with the English River First Nation with a Letter of Intent as well.
The contract and letter of intent include the development of the expected in-position recovery uranium mine functioning at Denison’s, which is a 90% acquired by the Wheeler River Uranium Project. The location of uranium mining and its associated project is expected to be in the Athabasca Basin region in northern Saskatchewan. Furthermore, Denison and English River First Nation have also secured an exploration contract so Denison’s exploration of Uranium will take place among the cultural land of English River First Nation.
Denison has stated that these contracts depict its aim of establishing a business in a modern and self-sufficient way that is on par with English River First Nation rights and forms a relationship with Indigenous peoples.
Uranium, essential for green energy?
Uranium has seen a sudden soar in price as Biden’s policy and aims to convert the US economy to clean electricity require building more nuclear plants and enriching them with uranium.
Furthermore, experts from the EU are insisting EU governments to change the classification of nuclear energy to clean and sustainable hence uranium will be considered essential for green energy surging the price of uranium and its stocks. One nuclear plant produces as much electricity as approximately two coal plants or three to four renewable plants as reported from a US federal agency peaking investor interest in uranium ‘enriched’ stocks.
The contracts set that support mining operations while respecting the traditions of the surrounding has proven the company to have an ethical stance. Furthermore, with China announcing to increase 48 gigawatts presently, to 70GW by through uranium, Investors are expecting future valuations of the company to climb as the company displays ethical values combined with a competitive spirit.