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Denison Mines Corp. (“Denison” or the “Company”) (TSX: DML) (NYSE American: DNN) is pleased to announce that it has today completed a non-brokered private placement of common shares qualified as “flow-through shares” for purposes of the Income Tax Act (Canada) (the “Flow-Through Shares”) at a price of C $ 0.86 per Share, for gross proceeds of approximately C $ 930,000 (the “Offering”) . View PDF version
Funding was assessed on December 16, 2020 at a premium of 17% to the 5-day Volume Weighted Average (“PPAV”) price of the Company’s shares on the TSX.
David Cates , President and CEO of Denison, commented, “This small fundraising was driven by a strong insider participation – with Denison’s directors and officers representing 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 main purpose of enabling the Company to participate in the exploration of non-operated joint venture projects, where work has been planned by the operator. for early 2021. The proceeds of 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 “exploration expenses in Canada” which are also qualified as “flow-through mining expenses” (within the meaning of Income Tax Act ( Canada )), related to the company’s uranium exploration projects in Canada Saskatchewan and waive these exploration expenses in Canada with an effective date no later than December 31, 2020 .
The company currently intends to use the proceeds of the offering to fund its share of exploration expenses expected to be incurred in early 2021 on some of its unexploited joint venture projects and other projects operated by Denison. in the Athabasca Basin region.
The flow-through shares issued in connection with the offering are subject to a statutory holding period in accordance with applicable Canadian securities legislation.
This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of the securities in any jurisdiction where such an offer, solicitation or sale would be illegal. The Flow-Through Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or United States securities laws and may not be offered or sold in United States failure to register under the United States Securities Act of 1933, as amended, or any United States securities law or compliance with an applicable exemption from such registration requirements.
Denison is a uranium exploration and development company with interests focused in the Athabasca North basin region Saskatchewan, Canada . The company’s flagship project is the 90% owned Wheeler River uranium project, which is the largest undeveloped uranium project in the infrastructure-rich part of the Athabasca North basin region Saskatchewan . Denison’s interests in Saskatchewan also include a 22.5% interest in the McClean Lake Joint Venture (“ MLJV ”), which includes several uranium deposits and the McClean Lake uranium plant, which currently processes ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest deposits and 66.90% in the Tthe Heldeth Túé (“THT”, formerly Zone J) and Huskie deposits on the Waterbury property Lake. The Midwest, THT and Huskie fields are located within 20 kilometers of the McClean Lake mill. In addition, Denison has an extensive portfolio of exploration projects in the Athabasca Basin region.
Denison is engaged in mine decommissioning and environmental services through its DES division, which manages Elliot Lake reclamation projects and provides post-closure mine and maintenance services to industry and government clients.
Denison is also the manager of Uranium Participation Corporation, a company listed on the Toronto Stock Exchange under the symbol “U”, which invests in uranium oxide in concentrates and uranium hexafluoride.
Caution regarding forward-looking statements
Certain information contained in this press release constitutes “ forward-looking information ” within the meaning of United States and Canadian laws relating to the business, operations, financial performance and condition of Denison.
Generally, these forward-looking statements can be identified by the use of forward-looking terms such as “ plans ”, “ plans ”, “ budget ”, “ planned ”, “ estimates ”, “ ‘forecasts’,’ foresees’, ‘anticipates’, or’ believes’, or the negative aspects and / or variations of these words and phrases, or state that certain actions, events or results’ may ‘,’ could ‘,’ would be ‘,’ could ‘or’ will be taken ‘,’ occur ‘,’ be reached ‘or’ has the potential to ‘. In particular, this press release contains forward-looking information relating to the following: the Company’s expectations regarding the Offer, including the use of the proceeds thereof; and Denison’s percentage ownership interest in its properties and plans and agreements with its joint venture partners, if any.
Forward-looking statements are based on the opinions and estimates of management as of the date on which such statements are made, and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity , Denison’s performance or achievements differ materially from those expressed or implied in these forward-looking statements. Denison believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and the results may differ materially from those anticipated in this forward-looking information. For a discussion of the risks and other factors that may influence forward-looking events, please see the factors discussed in Denison’s AIF dated March 13, 2020 under the heading “Risk factors”. These factors are not and should not be construed as exhaustive.
Therefore, readers should not place undue reliance on forward-looking statements. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. All forward-looking information and the assumptions made in this regard speak only as of the date of this press release. Denison assumes no obligation to update or publicly revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in Denison’s expectations, except as otherwise provided by applicable law.
SOURCE Denison Mines Corp.
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