TORONTO, Oct. 7, 2020 /CNW/ - Denison Mines Corp.
("Denison" or the "Company") (TSX: DML) (NYSE American: DNN)
is pleased to announce that it has entered into an agreement
with Cantor Fitzgerald Canada Corporation ("CFCC") and Haywood
Securities Inc. ("Haywood"), as co-lead underwriters and joint
book-runners (the "Co-Lead Underwriters"), on behalf of themselves
and a syndicate of underwriters, (collectively with CFCC and
Haywood, the "Underwriters") under which the Underwriters have
agreed to purchase, on a bought deal basis, 27,030,000 common
shares of the Company (the "Offered Shares") at the price of
US$0.37 per Offered Share (the
"Issue Price") for aggregate gross proceeds of approximately
US$10 million (the
"Offering").
In addition, Denison has agreed to grant to the Underwriters an
over-allotment option (the "Over-Allotment Option") exercisable, in
whole or in part, at the sole discretion of the Underwriters to
purchase up to an additional 4,054,500 Offered Shares at the
Issue Price for a period of up to 30 days after the closing of the
Offering, for potential additional gross proceeds to Denison of up
to US$1.5 million.
Proceeds of the Offering are anticipated to be used to fund
evaluation and environmental assessment activities on Denison's
Wheeler River project, as well as for general working capital
purposes.
Denison will pay to the Underwriters a cash commission equal to
6.0% of the gross proceeds of the Offering, including any proceeds
received from the exercise of the Over-Allotment Option.
The Offering is expected to close on or about October 14, 2020 and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the Toronto Stock
Exchange and the NYSE American.
The Offering will be made by way of a prospectus supplement (the
"Prospectus Supplement") to the Company's existing Canadian short
form base shelf prospectus (the "Base Shelf Prospectus") and U.S.
registration statement on Form F-10, as amended (File No.
333-238108) (the "Registration Statement"), each dated June 2, 2020. The Registration Statement was
declared effective by the United States Securities and Exchange
Commission (the "SEC") on June 3,
2020. The Prospectus Supplement has been filed with the
securities commissions in each of the provinces and territories
of Canada, except Quebec, and
with the SEC. The Canadian Prospectus Supplement (together
with the related Canadian Base Shelf Prospectus) is available on
the SEDAR website maintained by the Canadian Securities
Administrators at www.sedar.com. The U.S. Prospectus
Supplement (together with the related U.S. Base Shelf Prospectus)
is available on the SEC's website at www.sec.gov.
Alternatively, the Prospectus Supplement and related Base Shelf
Prospectus may be obtained upon request by contacting the Company
or Cantor Fitzgerald Canada Corporation in Canada, attention:
Equity Capital Markets, 181 University Avenue, Suite
1500, Toronto, ON, M5H 3M7, email: ecmcanada@cantor.com;
Cantor Fitzgerald & Co., Attention: Equity Capital Markets, 499
Park Avenue, 6th Floor, New York, New York, 10022 or by email at
prospectus@cantor.com or Haywood Securities Inc., attention: Equity
Capital Markets, 200 Burrard Street, Suite 700, Vancouver, BC, V6C 3L6, email:
ecm@haywood.com.
This press release does not constitute an offer to sell or
the solicitation of an offer to buy securities, nor will there be
any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.
The securities being offered have not been approved or disapproved
by any regulatory authority, nor has any such authority passed upon
by the accuracy or adequacy of the Prospectus Supplement, the Base
Shelf Prospectus or the Registration Statement.
About Denison
Denison Mines Corp. was formed under the laws of Ontario and is a reporting issuer in all
Canadian provinces and territories. Denison's common shares are
listed on the Toronto Stock Exchange (the 'TSX') under the symbol
'DML' and on the NYSE American exchange under the symbol 'DNN'.
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. 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 66.71% interest in the J Zone and Huskie deposits on the
Waterbury Lake property. The Midwest, J Zone and Huskie deposits
are located within 20 kilometers 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 Closed Mines group (formerly Denison
Environmental Services), which manages Denison's Elliot Lake reclamation projects and provides
post-closure mine and maintenance services to a variety of industry
and government clients.
Denison is also the manager of Uranium Participation Corporation
('UPC'), a publicly traded company listed on the TSX under the
symbol 'U', which invests in uranium oxide in concentrates
('U3O8') and uranium hexafluoride
('UF6').
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 likelihood of
completion of the Offering, the use of proceeds from sales from the
Offering, the closing of the Offering and the ability to obtain the
necessary regulatory authority and approvals.
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, if market conditions remain volatile and/or COVID-19
mitigation measures result in more social and economic disruptions,
Denison may not be able to complete the Offering on the terms
herein described or at all or pursue its evaluation and
environmental assessment activities, which could have significant
impacts on Denison. In addition, the currently anticipated
evaluation and environmental assessment activities may not be
maintained after further testing or Denison may decide or otherwise
be required to alter or discontinue testing, evaluation and
development work, if it is unable to maintain or otherwise secure
the necessary approvals or resources (such as testing facilities,
capital funding, etc.). Denison believes that the expectations
reflected in this forward-looking information are reasonable and 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/denison-announces-us10-million-bought-deal-offering-301148080.html
SOURCE Denison Mines Corp.