Business
Denison Mines Announces Funding of Project Finance Initiative Involving Strategic Acquisition of Physical Uranium
TORONTO, March 15, 2021 /CNW/ - Denison Mines Corp. ("Denison" or the "Company") (TSX: DML) (NYSE American: DNN) is pleased to announce that it has entered into
About this update from Denison Mines Corp.
[{"type":"text","content":" TORONTO, March 15, 2021 /CNW/ - 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 (\"CFCC\"), as lead underwriter and sole book-runner, on behalf of themselves and a syndicate of underwriters (collectively with CFCC, the \"Underwriters\"), under which the Underwriters have agreed to purchase, on a bought deal basis, 68,200,000 units of the Company (the \"Units\") at the price of USD$1.10 per Unit (the \"Issue Price\") for aggregate gross proceeds of approximately USD$75 million (the \"Unit Offering\"). Net proceeds of the Unit Offering are anticipated to be used to fund the strategic purchase of uranium concentrates (\"U3O8\" or \"Uranium\") to be held by Denison as a long-term investment, intended to support the potential future financing of the advancement and/or construction of the Company's flagship 90% owned Wheeler River Uranium Project (\"Wheeler River\"). Uranium purchases are planned to be made in the uranium spot market, with a target of accumulating approximately 2.5 million pounds U3O8. The purchased Uranium is expected to strengthen the Company's balance sheet and enhance its ability to access future project financing, with the potential collateralization of the Uranium holdings. In addition, the purchased Uranium could provide the Company with increased flexibility to negotiate long-term Uranium supply arrangements with future customers. If a future decision is made to advance Wheeler River into construction, the Company would eventually market its physical Uranium holdings to its future customers along with the mine production from Wheeler River. This press release constitutes a \"designated news release\" for the purposes of the Company's prospectus supplement dated November 13, 2020 to its short form base shelf prospectus dated June 2, 2020. David Cates, President and CEO of Denison, commented, \"Public support for carbon-free, base-load nuclear energy continues to grow as part of the clean energy-transition movement. Denison is well positioned to participate in this exciting narrative through the potential future development of our flagship Wheeler River uranium project. With the uranium market showing continued signs of incremental improvement in supply and d...