TORONTO, Jan. 13, 2022 /CNW/ - Denison Mines Corp.
("Denison" or the "Company") (TSX: DML) (NYSE American: DNN) is
pleased to announce that it has executed a Repayment Schedule
Agreement (the "Agreement") with Uranium Industry a.s. ("UI"),
pursuant to which the parties have negotiated the repayment of the
debt owing from UI to Denison, and that Denison has received an
initial US$2 million debt repayment
instalment in accordance with the terms of the Agreement. View PDF
version
In July 2020, Denison announced
the receipt of a final award in favour of Denison from the
London Court of International
Arbitration ("LCIA") with respect to the arbitration proceedings
between the Company and UI related to the 2015 sale by Denison to
UI of its mining assets and operations located in Mongolia ("Arbitration Award"). The
arbitration panel declared that UI violated its obligations to the
Company under the related agreements and ordered UI to pay the
Company USD$10 million plus interest
at a rate of 5% per annum from November 16,
2016, plus certain legal and arbitration costs.
Under the terms of the Agreement, UI has agreed to make
scheduled payments on account of the Arbitration Award, plus
additional interest and fees, through a series of quarterly
installments and annual milestone payments, until December 31, 2025. The total amount due to
Denison under the Agreement, including the initial US$2 million already received, is approximately
US$16 million. The Agreement
includes customary covenants and conditions in favour of Denison,
including certain restrictions on UI's ability to take on
additional debt, in consideration for Denison's deferral of
enforcement of the Arbitration Award while UI is in compliance with
its obligations under the Agreement.
This press release constitutes a "designated news release"
for the purposes of the Company's prospectus supplement dated
September 28, 2021 to its short form
base shelf prospectus dated September 16,
2021.
About Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca
Basin region of northern Saskatchewan,
Canada. The Company has an effective 95% interest in its
flagship 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, which includes several
uranium deposits and the McClean Lake uranium mill that is
contracted to process the ore from the Cigar Lake mine under a toll
milling agreement, plus a 25.17% interest in the Midwest Main 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 Main, Midwest A, THT and Huskie are
located within 20 kilometres of the McClean Lake
mill.
Through its 50% ownership of JCU (Canada) Exploration Company, Limited ("JCU"),
Denison also holds interests in various uranium project joint
ventures in Canada, including the
Millennium project (JCU 30.099%), the Kiggavik project (JCU
33.8123%) and Christie Lake (JCU
34.4508%).
Denison is also 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 third-party post-closure mine care and maintenance
services.
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 Agreement and the
expectations of scheduled repayment of the Arbitration Award
pursuant thereto; 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, the execution and initial repayment under the
Agreement may not lead to recovery of further repayments.
Denison believes that the expectations reflected in its
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 26, 2021
or subsequent quarterly financial reports 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.
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SOURCE Denison Mines Corp.