Denison Completes Sale of GoviEx Shares and Warrants

Rhea-AI Summary

Denison Mines Corp. has successfully completed the sale of 32,500,000 common shares of GoviEx Uranium Inc. for gross proceeds of $15,600,000. Additionally, Denison issued the same number of common share purchase warrants, allowing holders to acquire GoviEx shares at an exercise price of $0.80 over 18 months. If fully exercised, this could add $26,000,000 in gross proceeds to Denison. The company maintains a strong position with a 95% interest in the Wheeler River Uranium Project, the largest undeveloped uranium project in Saskatchewan.

Positive

• Completed sale of 32,500,000 shares for $15,600,000.
• Potential additional proceeds of $26,000,000 if warrants are fully exercised.
• Strong interest in Wheeler River Uranium Project with 95% ownership.

Negative

• None.

TORONTO, Oct. 26, 2021 /PRNewswire/ - Denison Mines Corp. ("Denison" or the "Company") (TSX: DML) (NYSE American: DNN) is pleased to announce it has completed its previously announced sale of 32,500,000 common shares of GoviEx Uranium Inc. ("GoviEx") for gross proceeds to Denison of $15,600,000. View PDF version

In addition, Denison has issued 32,500,000 common share purchase warrants entitling the holder to acquire one additional common share of GoviEx owned by Denison at an exercise price of $0.80 for a term of 18 months. If the warrants are exercised in full, Denison will receive further gross proceeds of $26,000,000 and will transfer a further 32,500,000 common shares of GoviEx to the warrant holders.

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 ("MLJV"), 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, Denison holds additional 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's exploration portfolio includes further interests in properties covering ~280,000 hectares in the Athabasca Basin region.

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 post-closure mine care and maintenance services to a variety of industry and government clients.

Follow Denison on Twitter @DenisonMinesCo

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.

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 sale of the GoviEx common shares and warrants, including the terms and impacts of exercise of the GoviEx Warrants; and expectations regarding its joint venture ownership interests and the continuity of its agreements with its partners and 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. 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 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.

FAQ

What was the total proceeds from Denison Mines' sale of GoviEx shares?

Denison Mines raised gross proceeds of $15,600,000 from the sale.

What is the exercise price for the warrants issued by Denison Mines?

The exercise price for the warrants is $0.80.

How many warrants did Denison issue for GoviEx shares?

Denison issued 32,500,000 common share purchase warrants.

What is Denison Mines' interest in the Wheeler River Uranium Project?

Denison holds a 95% interest in the Wheeler River Uranium Project.

What happens if the GoviEx warrants are fully exercised?

If fully exercised, Denison could receive an additional $26,000,000.