Denison Mines Corp. (TSX: DML) (NYSE American: DNN) is pleased to announce that it has closed its previously announced bought deal public offering of units
The Company issued 31,593,950 units of the Company at US$0.91 per unit for aggregate gross proceeds of approximately US$28.75 million, which includes 4,120,950 units with the full exercise of the underwriters’ over-allotment option.
Each unit consists of one common share and one-half of one transferable common share purchase warrant of the Company. Each full warrant is exercisable to acquire one Company common share at an exercise price of US$2.00 for 24 months after issuance. The warrants are not listed.
The Offering was completed through a syndicate of underwriters co-led by Cantor Fitzgerald Canada Corporation and Haywood Securities Inc., as joint bookrunners, and including Canaccord Genuity Corp., Scotia Capital Inc. and TD Securities Inc.
Proceeds of the Offering are anticipated to be used to fund evaluation and environmental assessment activities in support of the advancement of the proposed Phoenix in-situ recovery uranium mining operation on Denison’s Wheeler River Uranium Project, as well as for general working capital purposes. Subject to a decision to advance to a formal Feasibility Study for Phoenix, the proceeds from the Offering and current working capital are expected, based on current estimates, to be sufficient to complete such FS process.
The Offering was made by way of a prospectus supplement dated February 16, 2021 to the Company’s existing Canadian short form base shelf prospectus dated June 2, 2020. The Prospectus Supplement has been filed with the securities commissions in each of the provinces and territories of Canada, except Quebec and is available on the SEDAR website maintained by the Canadian Securities Administrators at www.sedar.com.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. The Company’s flagship project is the 90% owned Wheeler River Uranium Project, which is the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region of northern Saskatchewan. Denison’s interests in Saskatchewan also include a 22.5% ownership interest in the McClean Lake joint venture (“MLJV”), which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 66.90% interest in the Tthe Heldeth Túé (“THT”, formerly J Zone) and Huskie deposits on the Waterbury Lake property. Each of Midwest, Midwest A, THT and Huskie are located within 20 kilometres of the McClean Lake mill.
Denison is engaged in mine decommissioning and environmental services through its Closed Mines group (formerly Denison Environmental Services), which manages Denison’s Elliot Lake reclamation projects and provides post-closure mine care and maintenance services to a variety of industry and government clients.
Denison is also the manager of Uranium Participation Corporation, a publicly traded company listed on the TSX under the symbol ‘U’, which invests in uranium oxide in concentrates (‘U3O8‘) and uranium hexafluoride (‘UF6‘).
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We acknowledge the [financial] support of the Government of Canada.