Denison Mines Corp. is pleased to announce that it has completed its previously announced private placement offering of common shares issued on a “flow-through” basis pursuant to the Income Tax Act.
The Company issued 4,950,495 Flow-Through Shares, at a price of CAD$1.01 per Flow-Through Share, for total gross proceeds of approximately CAD$5,000,000.
The Flow-Through Shares were issued through a syndicate of underwriters led by Cantor Fitzgerald Canada Corporation as sole bookrunner and including Haywood Securities Inc., Cormark Securities Inc., TD Securities Inc. and Eight Capital. The Flow-Through Shares are subject to a four-month hold period, which will expire on March 24, 2019.
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)) and anticipates using the gross proceeds for expenses related to the Company’s 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, 2018.
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90.0% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares.
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, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 65.92% interest in the J Zone deposit and Huskie discovery on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.