/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Nov. 18, 2019 /CNW/ - Denison Mines
Corp. ("Denison" or the "Company") (DML: TSX; DNN: NYSE
American) is pleased to announce that it has entered into an
agreement with Cantor Fitzgerald Canada Corporation as a sole
bookrunner and lead underwriter, 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, 6,030,000 flow-through common shares (the
"Flow-Through Shares") at a price of CAD$0.68 per share, for total gross proceeds of
approximately CAD$4.1 million (the
"Offering"). View PDF version
David Cates, President and CEO of
Denison, commented, "This financing is expected to fund the
Company's share of exploration expenditures in 2020, which are
likely to be focused on the Company's 90% owned Wheeler River
project and involve further exploration around and delineation of
the high-grade Phoenix
deposit. Potential to add additional resources at
Phoenix exists outside of the
currently defined extents of the deposit – particularly around Zone
B, where previous mineralized results remain open on section or the
interpreted optimal exploration target remains untested, and at
Zone C, which is not currently included in the mineral resource
estimate, where similar targets exist. With several positive
results returned from recent In-Situ Recovery ('ISR') field tests
carried out at Phoenix, our
confidence in the ISR mining method is increasing and we believe
the time is right to go back to Phoenix and delineate the full extent of the
mineralization, which will ultimately inform our mine planning
activities and be incorporated into a future feasibility study for
the project."
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 up to two
business days prior to the closing date. The Underwriters will seek
to arrange for substituted purchasers for the Flow-Through Shares
in one or more provinces of Canada.
The closing of the Offering is expected to occur on or about
December 6, 2019 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 American. The Flow-Through Shares issued in connection
with the Offering will be subject to a statutory hold period in
accordance with applicable securities legislation.
The Company has agreed 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,
2019.
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 66.51% interest in the J Zone and Huskie
deposits on the Waterbury Lake property. The Midwest, J Zone 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 ('U3O8')
and uranium hexafluoride ('UF6').
Technical Disclosure and Qualified Person
The disclosure of scientific and technical information
regarding Denison's properties in this news release was prepared or
reviewed by Dale Verran, MSc,
P.Geo., Pr.Sci.Nat., the Company's Vice President, Exploration, a
Qualified Person in accordance with the requirements of NI
43-101.
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 proposed Offering, including
the completion and use of proceeds thereof; exploration,
development and expansion plans, objectives and regulatory
processes; 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 12, 2019
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.