TORONTO, Oct. 10,
2023 /PRNewswire/ - Denison Mines Corp. ("Denison" or
the "Company") (TSX: DML) (NYSE American: DNN) is pleased to
announce that it has entered into an agreement with Cantor
Fitzgerald Canada Corporation, as sole book-runner and lead
underwriter, on its own behalf and on behalf of a syndicate of
underwriters (collectively, the "Underwriters"), under which the
Underwriters have agreed to purchase, on a bought deal basis, 37
million shares of the Company at US$1.49 per share (the "Issue Price") for
aggregate gross proceeds of approximately US$55.13 million (the "Offering"). View PDF
version
In addition, Denison has agreed to grant to the Underwriters an
over-allotment option (the "Over-Allotment Option") exercisable, in
whole or in part, at the sole discretion of the Underwriters to
purchase up to an additional 5.55 million shares of the Company at
the Issue Price until October 16,
2023 for potential additional gross proceeds to Denison of
up to approximately US$8.27
million.
Denison intends to use the net proceeds from the Offering to
fund (1) the advancement of the proposed Phoenix in-situ recovery uranium mining
operation at Denison's Wheeler River Project (the "Phoenix
Project") through the procurement of long lead items (including
associated engineering, testing and design) identified during the
ongoing Front End Engineering Design process and the Phoenix
Feasibility Study; (2) exploration and evaluation expenditures; and
(3) general corporate and administrative expenses, including those
in support of corporate development activities, and working capital
requirements.
Based upon preliminary budgets and plans, Denison expects the
funds, taken together with existing financial resources including
those from prior prospectus financings, will be sufficient to
advance the Phoenix Project to a final investment decision and into
the project execution phase. Denison further expects to be
able to fund operations during this period while maintaining a
large portion of its current physical uranium holdings, to be
utilized in the future in connection with financing the continued
advancement and/or construction of the Phoenix Project.
Denison will pay to the Underwriters a cash commission equal to
4.75% of the gross proceeds of the Offering, including any proceeds
received from the exercise of the Over-Allotment Option.
The Offering will be made by way of a prospectus supplement (the
"Prospectus Supplement") to the Company's existing Canadian short
form base shelf prospectus (the "Base Shelf Prospectus") and U.S.
registration statement on Form F-10, as amended (File No.
333-258939) (the "Registration Statement"), each dated September 16, 2021. The Registration Statement
was declared effective by the United States Securities and Exchange
Commission (the "SEC") on September 17,
2021. The Prospectus Supplement has been filed with the
securities commissions in each of the provinces and territories of
Canada, except Quebec, and with the SEC. The Canadian
Prospectus Supplement is available on the SEDAR+ website maintained
by the Canadian Securities Administrators at
www.sedarplus.ca. The U.S. Prospectus Supplement (together
with the related U.S. Base Shelf Prospectus) is available on the
SEC's website at www.sec.gov. Alternatively, the Prospectus
Supplement may be obtained upon request by contacting the Company
or Cantor Fitzgerald Canada Corporation in Canada, attention: Equity Capital Markets, 181
University Avenue, Suite 1500, Toronto, ON, M5H 3M7,
email: ecmcanada@cantor.com or Cantor Fitzgerald & Co.,
Attention: Equity Capital Markets, 499 Park Avenue, 6th
Floor, New York, New York, 10022
or by email at prospectus@cantor.com.
The Offering is expected to close on or about October 16, 2023, subject to the satisfaction of
certain conditions including, but not limited to, the receipt of
all necessary approvals, including the approval of the Toronto
Stock Exchange and the NYSE American.
This press release does not constitute an offer to sell or
the solicitation of an offer to buy securities, nor will there be
any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
The securities being offered have not been approved or disapproved
by any regulatory authority, nor has any such authority passed upon
by the accuracy or adequacy of the Prospectus Supplement, the Base
Shelf Prospectus or the Registration Statement.
About Wheeler River
Wheeler River is the largest undeveloped uranium project in
the infrastructure-rich eastern portion of the Athabasca Basin region, in northern
Saskatchewan. The project is host
to the high-grade Phoenix and
Gryphon uranium deposits, discovered by Denison in 2008 and 2014,
respectively, and is a joint venture between Denison (90% and
operator) and JCU (Canada)
Exploration Company Limited (10%). In August
2023, Denison filed a technical report summarizing the
results of (i) the feasibility study completed for In-Situ Recovery
('ISR') mining of the high-grade Phoenix uranium deposit and (ii) a cost update
to the 2018 Pre- Feasibility Study for conventional underground
mining of the basement-hosted Gryphon uranium deposit. Based
on the respective studies, both deposits have the potential to be
competitive with the lowest cost uranium mining operations in the
world. Permitting efforts for the planned Phoenix ISR operation
commenced in 2019 and have advanced significantly, with licensing
in progress and a draft Environmental Impact Statement submitted
for regulatory and public review in October
2022. More information is available in the technical report
titled "NI 43-101 Technical Report on the Wheeler River Project
Athabasca Basin, Saskatchewan, Canada" dated August 8, 2023 with an effective date of
June 23, 2023, a copy of which
is available on Denison's website and under its profile
on SEDAR+ at www.sedarplus.ca and on EDGAR
at www.sec.gov.
About Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca
Basin
region of northern Saskatchewan,
Canada. In addition to the Company's effective 95% interest
in its flagship Wheeler River Uranium Project, Denison's interests
in Saskatchewan include a 22.5%
ownership interest in the McClean Lake Joint Venture, which
comprises several uranium deposits and the McClean Lake uranium
mill that is contracted to process the ore from the Cigar Lake mine
under a toll milling agreement, plus a 25.17% interest in the
Midwest Main and Midwest A deposits and a 67.41% interest in the
Tthe Heldeth Túé ("THT") and Huskie
deposits on the Waterbury Lake property. The Midwest Main, Midwest
A, THT and Huskie deposits are located within 20 kilometres of the
McClean Lake mill.
Through its 50% ownership of JCU, Denison holds additional
interests in various uranium project joint ventures in Canada, including the Millennium project (JCU,
30.099%), the Kiggavik project (JCU, 33.8118%) and Christie Lake (JCU, 34.4508%).
Denison's exploration portfolio includes further interests in
properties covering ~285,000 hectares in the Athabasca Basin region.
Follow Denison on Twitter @DenisonMinesCo
Cautionary Statement Regarding Forward-Looking
Statements
Certain information contained in this news release constitutes
'forward-looking information', within the meaning of the applicable
United States and Canadian
legislation concerning the business, operations and financial
performance and condition of Denison. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as 'plans', 'expects', 'budget',
'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or
'believes', or the negatives and/or variations of such words and
phrases, or state that certain actions, events or results 'may',
'could', 'would', 'might' or 'will be taken', 'occur', 'be
achieved' or 'has the potential to'.
In particular, this news release contains forward-looking
information pertaining to: the terms and likelihood of completion
of the Offering, the use of proceeds from sales from the Offering,
including expectations with respect to the advancement of the
Phoenix Project and an investment decision on the Phoenix Project;
and the ability to satisfy the conditions to the closing of the
Offering.
Forward looking statements are based on the opinions and
estimates of management as of the date such statements are made,
and they are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Denison to be materially different
from those expressed or implied by such forward-looking statements.
For example, market volatility could impact Denison's ability to
complete the Offering on the terms herein described or at all. In
addition, Denison may decide or otherwise be required to suspend
its evaluation or other project activities if it is unable to
maintain or otherwise secure the necessary approvals or resources
(such as testing facilities, capital funding, etc.), which could
have a material impact on the Company's intended use of proceeds of
the Offering and other objectives stated in this press release.
Denison believes that the expectations reflected in this
forward-looking information are reasonable and no assurance can be
given that these expectations will prove to be accurate and results
may differ materially from those anticipated in this
forward-looking information. For a discussion in respect of risks
and other factors that could influence forward-looking events,
please refer to the factors discussed in Denison's Annual
Information Form dated March 27, 2023
under the heading "Risk Factors". These factors are not, and should
not be construed as being exhaustive.
Accordingly, readers should not place undue reliance on
forward-looking statements. The forward-looking information
contained in this news release is expressly qualified by this
cautionary statement. Any forward-looking information and the
assumptions made with respect thereto speaks only as of the date of
this news release. Denison does not undertake any obligation to
publicly update or revise any forward-looking information after the
date of this news release to conform such information to actual
results or to changes in Denison's expectations except as otherwise
required by applicable legislation.
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SOURCE Denison Mines Corp.