Business
Denison Mines Announces $15 Million Strategic Investment in F3 Uranium
TORONTO, Oct. 6, 2023 /CNW/ - Denison Mines Corp. ("Denison") (TSX: DML) (NYSE American: DNN) is pleased to announce that it has entered into a binding agreemen
About this update from Denison Mines Corp.
[{"type":"text","content":" TORONTO, Oct. 6, 2023 /CNW/ - Denison Mines Corp. (\"Denison\") (TSX: DML) (NYSE American: DNN) is pleased to announce that it has entered into a binding agreement with F3 Uranium Corp. (\"F3\") to make a $15 million strategic investment in F3 in the form of unsecured convertible debentures (the \"Debentures\"). David Cates, President and CEO of Denison commented, \"F3's technical team has an incredible track record of exploration success including the discovery of the JR Zone on the Patterson Lake North (\"PLN\") property, which represents one of the top new uranium discoveries globally. We are pleased to be investing in F3, supporting the further assessment of the PLN property, and providing Denison shareholders with exposure to this exciting new discovery in the Athabasca Basin.\" Dev Randhawa, CEO of F3 commented, \"We are pleased to welcome Denison as a strategic investor in F3. Denison is a uranium industry leader, possessing a diverse array of both early and advanced-stage assets in the Athabasca Basin, where F3 is currently advancing the PLN property. We highly value Denison's perspectives on uranium exploration, and look forward to pursuing a productive relationship.\" Terms of the Debentures The Debentures will carry a 9% coupon (the \"Interest\"), payable quarterly over a 5-year term and will be convertible at Denison's option into common shares of F3 at a conversion price of $0.56 per share (the \"Conversion Price\"), representing a 30% premium to F3's five-day volume weighted average share price (\"VWAP\") on the TSX Venture Exchange (the \"TSXV\") as at October 5, 2023. F3 shall have, at its sole discretion, the right to pay up to one-third of the Interest in common shares of F3 issued at a price per common share equal to the VWAP of F3's common shares on the TSXV for the 20 trading days ending on the day prior to the date on which such payment of Interest is due. On or after the third anniversary of the date of issuance of the Debentures, at any time F3's 20-day VWAP on the TSXV exceeds 130% of the Conversion Price, F3 will be entitled to redeem the Debentures at par plus accrued and unpaid Interest. Further, in the event of an F3 change of control transaction, F3 may redeem the Debentures at par plus accrued and unpaid interest plus an amount equal to the greater of (i) 15% of the principal...