At the Market Offering Agreement TORONTO, Sept. 28, 2021 /PRNewswire/ - Denison Mines Corp. ("Denison" or the "Company") (TSX: DML) (NYSE American: DNN) is pleased to announce that it has entered into an equity distribution agreement dated September 28, 2021 (the "Equity Distribution Agreement"), providing for an at-the-market ("ATM") equity offering program, with Cantor Fitzgerald Canada Corporation ("CFCC"), Scotia Capital Inc. (together with CFCC, the "Co-Lead Canadian Agents"), Cantor Fitzgerald & Co. and Scotia Capital (USA) Inc. (together with the Co-Lead Canadian Agents, the "Agents"). View PDF version
The ATM will allow Denison, through the Agents, to, from time to time, offer and sell, in Canada and the United States through the facilities of the Toronto Stock Exchange ("TSX") and/or NYSE American, such number of common shares as would have an aggregate offering price of up to USD$50 million. Sales of the common shares, if any, will be made by means of ordinary brokers' transactions on the TSX and/or NYSE American or otherwise at market prices prevailing at the time of sale. The ATM will be effective until October 16, 2023 unless terminated prior to such date by Denison or otherwise in accordance with the Equity Distribution Agreement.
The Company considers the execution of the Equity Distribution Agreement a routine capital markets matter, establishing the ATM as a potentially valuable tool for future access to the public market, where equity offerings can occur at market prices and with significantly reduced costs. The timing and extent of the use of the ATM will be at the discretion of the Company. Accordingly, total gross proceeds from equity offerings under the ATM could be significantly less than USD$50 million.
As outlined in the prospectus supplement, the Company intends to use any proceeds from the ATM to fund its mineral property evaluation and project engineering activities, long lead project construction items as well as general, corporate and administrative expenses. The actual allocation of the proceeds may vary depending on the amount of proceeds raised, the time periods in which the proceeds are raised, and the future developments in relation to the Company's projects or unforeseen events.
The sale of the Company's common shares through the ATM will be made pursuant to, and qualified in Canada by, a prospectus supplement dated September 28, 2021 ("Prospectus Supplement") to the base shelf prospectus of the Company dated September 16, 2021 ("Base Prospectus"), and in the United States pursuant to a prospectus supplement dated September 28, 2021 to the Company's final base shelf prospectus contained in the Company's registration statement Form F-10 (File No. 333-258939) as amended and declared effective on September 17, 2021 (the "U.S. Registration Statement") filed with the United States Securities and Exchange Commission.
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