TORONTO, Oct. 16, 2023 /CNW/ - Denison Mines Corp.
("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to announce that today it has closed
the previously announced bought deal public offering of common
shares (the "Offering"), resulting in the issuance of 37 million
shares, at a price of US$1.49 per
share, for total gross proceeds of US$55.13
million. View PDF version
The Offering was completed through a syndicate of underwriters
led by Cantor Fitzgerald Canada Corporation, as sole bookrunner and
lead underwriter, together with Canaccord Genuity Corp., Haywood
Securities Inc., Raymond James Ltd., BMO Nesbitt Burns Inc., Scotia
Capital Inc., Cormark Securities Inc. and SCP Resource Finance LP
pursuant to an underwriting agreement between Denison and the
underwriters dated October 11,
2023.
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 (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, which are planned
to be utilized in the future in connection with financing the
continued advancement and/or construction of the Phoenix
Project.
The Common Shares were qualified for issuance pursuant to 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.
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 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 Denison's expectations regarding its joint venture
ownership interests and the continuity of its agreements with third
parties.
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, 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.