Denison Mines closes $930,000 private placement
2020-12-31 17:21 ET - News Release
Mr. David Cates reports
DENISON COMPLETES PRIVATE PLACEMENT OF FLOW-THROUGH SHARES FOR PROCEEDS OF APPROX. CAD$930,000
Denison Mines Corp. has completed a non-brokered private placement of common shares that qualify as flow-through shares for purposes of the Income Tax Act (Canada) at a price of 86 cents per share for gross proceeds of approximately $930,000.
The financing was priced on Dec. 16, 2020, at a 17-per-cent premium to the then five-day volume weighted average price (VWAP) of the company's shares on the Toronto Stock Exchange.
David Cates, president and chief executive officer of Denison, commented: "This small financing was led by strong insider participation -- with Denison directors and officers accounting for over 50 per cent 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 Dec. 31, 2020.
The company currently intends to use the proceeds of the offering to finance 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.
About Denison Mines Corp.
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-per-cent-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-per-cent ownership interest in the McClean Lake joint venture (MLJV), 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-per-cent interest in the Midwest deposits and a 66.90-per-cent interest in the Heldeth Tue (THT, formerly J zone) and Huskie deposits on the Waterbury Lake property. The Midwest, THT and Huskie deposits are located within 20 kilometres 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 Denison's Elliot Lake reclamation projects and provides postclosure mine and maintenance services to industry and government clients.
Denison is also the manager of Uranium Participation Corp., a publicly traded company listed on the TSX under the symbol U, which invests in uranium oxide in concentrates and uranium hexafluoride.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.