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TORONTO, March 22, 2021 /CNW/ - Denison Mines
Corp. ("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to announce that it has closed its
previously announced bought deal public offering of units (the
"Offering"). The Company issued 78,430,000 units of the
Company at US$1.10 per unit for
aggregate gross proceeds of US$86,273,000, which included 10,230,000 units
through the full exercise of the underwriters' over-allotment
option. View PDF
Each unit consists of one common share and one-half of one
transferable common share purchase warrant of the Company.
Each full warrant is exercisable to acquire one Company common
share at an exercise price of US$2.25
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, as sole-bookrunner,
and Haywood Securities Inc., and including Scotia Capital Inc.,
Canaccord Genuity Corp., TD Securities Inc., BMO Nesbitt Burns
Inc., Cormark Securities Inc., Raymond James Ltd. and Paradigm
Capital Inc.
Net proceeds of the Offering are anticipated to be used to fund
the strategic purchase of uranium concentrates
("U3O8") 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 of
U3O8.
The Offering was made by way of a prospectus supplement dated
March 16, 2021 (the "Prospectus
Supplement") to the Company's existing Canadian short form base
shelf prospectus dated June 2, 2020
(the "Base Shelf Prospectus"). The Prospectus Supplement has been
filed with the securities commissions in each of the provinces and
territories of Canada, except Quebec and is available on the SEDAR website
maintained by the Canadian Securities Administrators at
www.sedar.com.
This press release does not constitute an offer to sell or
the solicitation of an offer to buy securities, nor will there be
any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
The securities offered have not been approved or disapproved by any
regulatory authority, nor has any such authority passed upon by the
accuracy or adequacy of the Prospectus Supplement or the Base Shelf
Prospectus.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or
any state securities laws and may not be offered or sold within
the United States or to or for the
account or benefit of a U.S. person (as defined in Regulation S
under the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
About Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca
Basin region of northern 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 eastern portion of the
Athabasca Basin region of northern
Saskatchewan. Denison's interests
in Saskatchewan also include a
22.5% ownership interest in the McClean Lake joint venture
("MLJV"), which includes several uranium deposits and the McClean
Lake uranium mill, contracted to process the 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 Túé ("THT," formerly J Zone) and Huskie deposits on
the Waterbury Lake property. Each of Midwest, Midwest A, THT and
Huskie are located within 20 kilometres of the McClean Lake
mill.
Denison is engaged in mine decommissioning and environmental
services through its Closed Mines group (formerly Denison
Environmental Services), which manages Denison's Elliot Lake reclamation projects and provides
post-closure mine care and maintenance services to a variety of
industry and government clients.
Denison is also the manager of Uranium Participation
Corporation, a publicly traded company listed on the TSX under the
symbol 'U', which invests in uranium oxide in concentrates
('U3O8') and uranium hexafluoride
('UF6').
Cautionary Statement Regarding Forward-Looking
Statements
Certain information contained in this news release constitutes
'forward-looking information', within the meaning of the applicable
United States and Canadian
legislation concerning the business, operations and financial
performance and condition of Denison.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as 'plans', 'expects',
'budget', 'scheduled', 'estimates', 'forecasts', 'intends',
'anticipates', or 'believes', or the negatives and/or variations of
such words and phrases, or state that certain actions, events or
results 'may', 'could', 'would', 'might' or 'will be taken',
'occur', 'be achieved' or 'has the potential to'.
In particular, this news release contains forward-looking
information pertaining to: the use of proceeds from sales from the
Offering including the acquisition of approximate quantities of
uranium; the strategic objectives of Denison, including the
potential advancement of the Wheeler River project; and
Denison's expectations regarding its joint venture ownership
interests and the continuity of its agreements with third
parties.
Forward looking statements are based on the opinions and
estimates of management as of the date such statements are made,
and they are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Denison to be materially different
from those expressed or implied by such forward-looking
statements.
For example, Denison may not be able to deploy the proceeds as
intended, if Uranium is not available to be purchased at all or at
prices deemed appropriate. Further, should the price of uranium
materially decline, Denison's strategy of acquiring and holding
physical uranium could expose Denison to significant losses and
adversely impact the financial position of the Company. In
addition, the currently anticipated evaluation and environmental
assessment activities may not be maintained after further testing
or Denison may decide or otherwise be required to alter or
discontinue testing, evaluation and development work, if it is
unable to maintain or otherwise secure the necessary approvals or
resources (such as testing facilities, capital funding, etc.) as a
result of COVID-19 pandemic-related disruptions or otherwise and
the Company may not be able to, or may choose not to, proceed to a
feasibility study, construction or production for Wheeler River.
Denison believes that the expectations reflected in this
forward-looking information are reasonable and no assurance can be
given that these expectations will prove to be accurate and results
may differ materially from those anticipated in this
forward-looking information. For a discussion in respect of risks
and other factors that could influence forward-looking events,
please refer to the factors discussed in the Management's
Discussion & Analysis dated March 4,
2021 under the heading "Risk Factors". These factors are
not, and should not be construed as being exhaustive.
Accordingly, readers should not place undue reliance on
forward-looking statements. The forward-looking information
contained in this news release is expressly qualified by this
cautionary statement. Any forward-looking information and the
assumptions made with respect thereto speaks only as of the date of
this news release. Denison does not undertake any obligation to
publicly update or revise any forward-looking information after the
date of this news release to conform such information to actual
results or to changes in Denison's expectations except as otherwise
required by applicable legislation.
SOURCE Denison Mines Corp.