Business
Denison Mines Completes Private Placement of Flow-Through Shares for Proceeds of Approx. CAD$930,000
TORONTO, Dec. 31, 2020 /CNW/ - Denison Mines Corp. ("Denison" or the "Company") (TSX: DML) (NYSE American: DNN) is pleased to announce that today it has complet
About this update from Denison Mines Corp.
[{"type":"text","content":" TORONTO, Dec. 31, 2020 /CNW/ - Denison Mines Corp. (\"Denison\" or the \"Company\") (TSX: DML) (NYSE American: DNN) is pleased to announce that today it has completed a non-brokered private placement of common shares that qualify as \"flow-through shares\" for purposes of the Income Tax Act (Canada) (the \"Flow-Through Shares\") at a price of CAD$0.86 per share, for gross proceeds of approximately CAD$930,000 (the \"Offering\").. The financing was priced on December 16, 2020 at a 17% premium to the then 5-day volume weighted average price (\"VWAP\") of the Company's shares on the TSX. David Cates, President and CEO of Denison, commented, \"This small financing was led by strong insider participation – with Denison Directors and Officers accounting for over 50% of the Offering, even after a significant increase in the Company's share price during the first half of December. These funds were raised selectively, on a flow-through basis and at a premium, with the primary purpose of allowing the Company to participate in exploration on non-operated joint venture projects, where work has been planned by the operator for early 2021. Using the proceeds from this flow-through financing to fund exploration preserves the Company's non-flow-through capital, raised earlier in 2020, to fund the advancement of its flagship Wheeler River project.\" The Company has agreed to use the gross proceeds from the sale of the Flow-Through Shares for \"Canadian exploration expenses\" that also qualify as \"flow-through mining expenditures\" (within the meanings of the Income Tax Act (Canada)), related to the Company's Canadian uranium mining exploration projects in Saskatchewan, and renounce such Canadian exploration expenses with an effective date of no later than December 31, 2020. The Company currently intends to use the proceeds of the Offering to fund its share of exploration expenditures expected to be incurred in early 2021 on certain of its non-operated joint venture projects and other Denison operated projects in the Athabasca Basin region. The Flow-Through Shares issued in connection with the Offering are subject to a statutory hold period in accordance with applicable Canadian securities legislation. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor ...