Business
Denison Mines Announces Sale of Goviex Uranium Shares and Warrants for up to $41.6 Million
TORONTO, Oct. 21, 2021 /CNW/ - Denison Mines Corp. ("Denison" or the "Company") (TSX: DML) (NYSE American: DNN) is pleased to announce it has entered into a pri
About this update from Denison Mines Corp.
[{"type":"text","content":" TORONTO, Oct. 21, 2021 /CNW/ - Denison Mines Corp. (\"Denison\" or the \"Company\") (TSX: DML) (NYSE American: DNN) is pleased to announce it has entered into a private agreement to sell (the \"Transaction\") 32,500,000 common shares (\"GoviEx Shares\") of GoviEx Uranium Inc. (\"GoviEx\"), currently held by Denison for investment purposes, and 32,500,000 common share purchase warrants entitling the holder to acquire one (1) additional common share of GoviEx owned by Denison at an exercise price of $0.80 for a term of 18 months (\"GoviEx Warrants\"). On closing of the Transaction, Denison will receive gross proceeds of $15,600,000 and will continue to hold 32,644,000 common shares of GoviEx. If the GoviEx Warrants are exercised in full, Denison will receive further gross proceeds of $26,000,000 and will transfer a further 32,500,000 common shares of GoviEx to the warrant holder. The agreement is with an existing institutional shareholder of GoviEx. The Transaction is subject to customary closing conditions and is expected to be completed before the end of October, 2021. The GoviEx Warrants, or common shares of GoviEx received on the exercise of the GoviEx Warrants, will be subject to a hold period of four months and one day from the closing date, in accordance with applicable securities laws. Denison intends to use the net proceeds of the Transaction for general corporate purposes. This press release constitutes a \"designated news release\" for the purposes of the Company's prospectus supplement dated September 28, 2021 to its short form base shelf prospectus dated September 16, 2021. Early Warning Disclosure Upon closing of the Transaction, Denison will dispose of 32,500,000 GoviEx Shares at an attributed value of $0.48 per GoviEx Share (attributing the full gross proceeds of the Transaction to the GoviEx Shares with the GoviEx Warrants having an attributable value of $0.00), for aggregate gross proceeds to Denison of $15.6 million. The sale of the GoviEx Shares and GoviEx Warrants has been made through a private sale agreement. Denison currently holds 65,144,021 GoviEx Shares (12.07% of the issued and outstanding GoviEx Shares, on a non-diluted basis based on GoviEx's current disclosure record). The disposition will result in an approximate 50% decrease in Denison's shareholdings in GoviEx. Upon compl...