Denison Mines closes US$28.75-million bought deal financing

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Denison Mines Corp. [DML-TSX; DNN-NYSE American] closed its previously announced bought deal public offering of units. Denison issued 31,593,950 units of the company at US$0.91 per unit for aggregate gross proceeds of approximately US$28.75 million, which includes 4,120,950 units with the full exercise of the underwriters’ over-allotment option.

Each unit consists of one common share and one-half of one transferable common share purchase warrant. Each full warrant is exercisable to acquire one share at an exercise price of US$2.00 for 24 months after issuance. The warrants are not listed.

The Offering was completed through a syndicate of underwriters co-led by Cantor Fitzgerald Canada Corporation and Haywood Securities Inc., as joint bookrunners, and including Canaccord Genuity Corp., Scotia Capital Inc. and TD Securities Inc.

Proceeds of the Offering are anticipated to be used to fund evaluation and environmental assessment activities in support of the advancement of the proposed Phoenix in-situ recovery uranium mining operation on Denison’s Wheeler River Uranium Project in Saskatchewan’s Athabasca basin, as well as for general working capital purposes.

Subject to a decision to advance to a formal Feasibility Study (FS) for Phoenix, proceeds from the Offering and current working capital are expected, based on current estimates, to be sufficient to complete the FS process.

The Offering was made by way of a prospectus supplement dated February 16, 2021 to the company’s existing Canadian short form base shelf prospectus dated June 2, 2020.

Denison is a uranium exploration and development company with interests focused in the Athabasca Basin. The Company’s flagship project is the 90%-owned Wheeler River Uranium Project, the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region. Denison’s interests in Saskatchewan also include a 22.5% interest in the McClean Lake joint venture, which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 66.90% interest in the Tthe Heldeth Tue and Huskie deposits on the Waterbury Lake property. Each of Midwest, Midwest A, THT and Huskie are within 20 km of the McClean Lake mill.


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