FCU $59 million in cash 01/31/2017, DML $20M Bought Deal PP Denison Mines Announces CAD$20M Bought Deal Private Placement of Common and Flow-Through Shares
TORONTO, ONTARIO--(Marketwired - Feb. 16, 2017) - Denison Mines Corp. ("Denison" or the "Company") (TSX:DML)(NYSE MKT:DNN) is pleased to announce that it has entered into an agreement with Paradigm Capital Inc., on behalf of a syndicate of underwriters (together, the "Underwriters"), under which the Underwriters have agreed to purchase, on a "bought deal" private placement basis, 5,790,000 common shares of the Company (the "Common Shares") at a price of CAD$0.95 per Common Share, 8,482,000 flow-through common shares (the "Tranche A Flow-Through Shares"), at a price of CAD$1.12 per share, and a further 4,065,000 flow-through common shares (the "Tranche B Flow-Through Shares" and together with the Tranche A Flow-Through Shares the "Flow-Through Shares") at a price of CAD$1.23 per share, for total gross proceeds of CAD$20,000,290 (the "Offering").
The Company has granted the Underwriters an option to increase the gross proceeds of the Offering by up to 15% (the "Underwriters' Option), exercisable in whole or in part at any time for a period of up to 48 hours prior to the closing date. The Underwriters' option will be exercisable in Common Shares only. The Underwriters will seek to arrange for substituted purchasers for the Common Shares and Flow-Through Shares in one or more provinces of Canada.
The closing of the Offering is expected to occur on or about March 9, 2017 and is subject to the completion of formal documentation and receipt of regulatory approvals, including the approval of the Toronto Stock Exchange and the NYSE MKT. The Common Shares and Flow-Through Shares issued in connection with the Offering will be subject to a statutory hold period in accordance with applicable securities legislation. The purchasers of the Tranche B Flow-Through Shares may, as part of charitable donation arrangements, subsequently donate such shares to "qualified donees", as defined in the Income Tax Act (Canada).
The Company intends to use the gross proceeds from the sale of the Flow-Through Shares for "Canadian exploration expenses" (within the meaning of the Income Tax Act (Canada)), related to the Company's Canadian uranium mining exploration projects in Saskatchewan. The Company has also agreed to renounce such Canadian exploration expenses with an effective date of no later than December 31, 2017. The Company intends to use the gross proceeds from the sale of the Common Shares for exploration and development activities at the Company's Canadian uranium mining projects in Saskatchewan, and for general corporate purposes.
About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan. Including its 60% owned Wheeler River project, which hosts the high grade Phoenix and Gryphon uranium deposits, Denison's exploration portfolio consists of numerous projects covering over 350,000 hectares in the infrastructure rich eastern Athabasca Basin. Denison's interests in Saskatchewan also include a 22.5% ownership 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 deposit and a 63.01% interest in the J Zone deposit on the Waterbury Lake property. Both the Midwest and J Zone deposits are located within 20 kilometres of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.
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