/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Dec. 31, 2020 /CNW/ - Denison Mines
Corp. ("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to announce that today it has completed a
non-brokered private placement of common shares that qualify as
"flow-through shares" for purposes of the Income Tax Act
(Canada) (the "Flow-Through
Shares") at a price of CAD$0.86 per
share, for gross proceeds of approximately CAD$930,000 (the "Offering"). View PDF
version
The financing was priced on December 16,
2020 at a 17% premium to the then 5-day volume weighted
average price ("VWAP") of the Company's shares on the
TSX.
David Cates, President and CEO of
Denison, commented, "This small financing was led by strong
insider participation – with Denison Directors and Officers
accounting for 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 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
December 31, 2020.
The Company currently intends to use the proceeds of the
Offering to fund 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.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The Flow-Through Shares have not been and
will not be registered under the United States Securities Act of
1933, as amended, or any U.S. state securities laws and may not be
offered or sold in the United
States absent registration under the United States
Securities Act of 1933, as amended, or any U.S. state securities
laws or compliance with an applicable exemption from such
registration requirements.
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, which is currently processing ore from the Cigar
Lake mine under a toll milling agreement, plus a 25.17% interest in
the Midwest deposits and a 66.90% interest in the Tthe Heldeth Túé
("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 post-closure mine and maintenance services to 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 and
uranium hexafluoride.
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 following: the
Company's expectations regarding the Offering, including the use of
proceeds thereof; and Denison's percentage interest in its
properties and its plans and agreements with its joint venture
partners, as applicable.
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.
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 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 Denison's Annual
Information Form dated March 13, 2020
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.