EX-99.1
2
a20210406-dmcprapr2021ann.htm
PRESS RELEASE DATED APRIL 8, 2021
a20210406-dmcprapr2021ann
Exhibit 99.1
Denison Mines Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
PRESS
RELEASE
DENISON ANNOUNCES EXECUTION OF AGREEMENTS
WITH THE ENGLISH RIVER FIRST NATION
Toronto, ON – April 6,
2021. Denison Mines Corp. (“Denison” or the
“Company”) (DML: TSX, DNN: NYSE American) is pleased to
announce that it has entered into a Participation and Funding
Agreement (the “Participation Agreement”) and Letter of
Intent (the “LOI”) with the English River First Nation
(“ERFN”) in connection with the advancement of the
proposed in-situ recovery (“ISR”) uranium mining
operation at Denison’s 90% owned Wheeler River Uranium
Project (“Wheeler River Project”), which is located in
the eastern portion of the Athabasca Basin region, in northern
Saskatchewan. Additionally, Denison and ERFN have also entered into
an Exploration Agreement (the “Exploration Agreement”)
in respect of Denison’s exploration and evaluation activities
within the ERFN traditional territories.
These
agreements reflect Denison’s desire to operate its business
in a progressive and sustainable manner that respects ERFN rights
and advances reconciliation with Indigenous peoples. The agreements
provide ERFN with economic opportunities and other benefits, while
establishing a foundation for future collaboration in an authentic,
cooperative, and respectful way – designed to cultivate a
long-term partnership in support of the Company’s activities,
including the advancement of the Company’s flagship Wheeler
River Project, which is currently advancing through a Federal and
Provincial Environmental Assessment (“EA”)
process.
David Cates, President & CEO of Denison
commented, “Many
of Denison’s interests in the Athabasca Basin region,
including our flagship Wheeler River Project, are situated in the
traditional territory of ERFN. We acknowledge and respect the
rights of ERFN and are pleased to formalize our Company’s
effort to work with ERFN in the pursuit of achieving (1) a genuine
understanding of the interests of the Nation, and (2) meaningful
mutual benefits from Denison’s activities. We feel strongly
that the future of the Wheeler River Project will be greatly
enhanced by partnering with ERFN – ensuring Indigenous
knowledge regarding historical and contemporary land use,
environmental knowledge, and environmental stewardship associated
with ERFN’s connection to this land, are all embedded as
essential components of the EA process and project designs.
Together, Denison and ERFN are putting reconciliation principles
into action and contributing to the important evolution of
Indigenous and industry relationships in the province of
Saskatchewan.”
Chief Jerry Bernard, of ERFN, added,
"We look
forward to building on our positive relationship with Denison
Mines. The participation and exploration agreements underscore the
importance of starting in a good way. That means recognizing and
considering ERFN’s rights and traditional land and resources
uses in all proposed activities on our ancestral lands. The
agreements will provide benefits for our community by providing
employment and contracting opportunities, annual financial
contributions and the ability to help shape project activities to
minimize environmental impacts.”
Participation Funding Agreement & Letter of Intent
The Participation Agreement and
LOI outline a mutually agreeable framework and
applicable funding arrangements to facilitate ERFN’s
participation and engagement in the EA process for the Wheeler
River Project – including ERFN’s meaningful
contribution to Denison’s environmental understanding of the
Wheeler River Project in a holistic way that respects ERFN’s
rights and interests. The LOI also outlines a mutual desire to
co-develop a future Shared Prosperity Agreement with respect to the
Wheeler River Project, which is intended to reflect a shared vision
of how new uranium mining operations in the Athabasca Basin region
can prioritize sustainability while also offering new and creative
ways to generate wealth and prosperity for all parties involved in
the advancement of the Project.
Exploration Agreement
The
Exploration Agreement establishes a framework for a cooperative and
mutually beneficial relationship between Denison and ERFN whereby
Denison’s exploration and evaluation activities are consented
to by ERFN and Denison agrees to support ERFN’s interests in
relation to community development and benefits, environmental
protection and monitoring, as well as sustainable and predictable
consultation and engagement processes. Through this cooperative
approach, the parties seek to continue building a strong and
positive foundation for Denison to proceed with its exploration and
evaluation activities, in the traditional territory of ERFN, in a
manner that is informed by and respects the rights and interests of
ERFN.
About ERFN
English River First Nation is located about 500 km north of
Saskatoon in Treaty 10, with a main settlement at Patuanak,
alongside the Churchill River. ERFN has seven different reserves:
Porter Island, Cree Lake, Elak Dase, Knee Lake, Dipper Rapids,
Wapachewunak and La Plonge.
ERFN is a multilingual community with various combinations of Dene,
Cree, Michif, English and French spoken by over 1,400 members. The
“people of the river” are known for their bold and
collaborative spirit and trusting and humble nature. They are
dedicated to stewardship of the land and the education of future
generations.
An industrious and entrepreneurial group, ERFN has led the way in
efficient economic relationship building through its support and
advancement of community development partnerships. These
relationships have been instrumental in advancing community support
and understanding across northern Saskatchewan.
About Wheeler River
Wheeler River is the largest undeveloped uranium project in the
infrastructure-rich eastern portion of the Athabasca Basin region,
in northern Saskatchewan – including combined Indicated
Mineral Resources of 132.1 million pounds U3O8 (1,809,000 tonnes
at an average grade of 3.3% U3O8), plus combined
Inferred Mineral Resources of 3.0 million pounds U3O8 (82,000 tonnes at
an average grade of 1.7% U3O8). The project is
host to the high-grade Phoenix and Gryphon uranium deposits,
discovered by Denison in 2008 and 2014, respectively, and is a
joint venture between Denison (90% and operator) and JCU (Canada)
Exploration Company Limited (10%).
A Pre-Feasibility Study (“PFS”) was completed for
Wheeler River in late 2018, considering the potential economic
merit of developing the Phoenix deposit as an ISR operation and the
Gryphon deposit as a conventional underground mining operation.
Taken together, the project is estimated to have mine production of
109.4 million pounds U3O8 over a 14-year
mine life, with a base case pre-tax NPV of $1.31 billion (8%
discount rate), Internal Rate of Return ("IRR") of 38.7%, and
initial pre-production capital expenditures of $322.5 million. The
Phoenix ISR operation is estimated to have a stand-alone base case
pre-tax NPV of $930.4 million (8% discount rate), IRR of 43.3%,
initial pre-production capital expenditures of $322.5 million, and
industry leading average operating costs of US$3.33/lb
U3O8.
The PFS is prepared on a project (100% ownership) and pre-tax
basis, as each of the partners to the Wheeler River Joint Venture
are subject to different tax and other obligations.
Further details regarding the PFS, including additional scientific
and technical information, as well as after-tax results
attributable to Denison's ownership interest, are described in
greater detail in the NI 43-101 Technical Report titled
"Pre-feasibility Study for the Wheeler River Uranium Project,
Saskatchewan, Canada" dated October 30, 2018 with an effective date
of September 24, 2018. A copy of this report is available on
Denison's website and under its profile on SEDAR at www.sedar.com
and on EDGAR at www.sec.gov/edgar.shtml.
Denison suspended certain activities at Wheeler River during 2020,
including the EA process, which is on the critical path to
achieving the project development schedule outlined in the PFS.
While the EA process has resumed, the Company is not currently able
to estimate the impact of the 2020 suspension on the project
development schedule outlined in the PFS, and users are cautioned
against relying on the estimates provided therein regarding the
start of pre-production activities in 2021 and first production in
2024.
About Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca Basin region of northern
Saskatchewan, Canada. In addition to the Wheeler River project,
Denison's interests in the Athabasca Basin 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 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. The Midwest, Midwest A,
THT and Huskie deposits are located within 20 kilometres of the
McClean Lake mill. In addition, Denison has an extensive portfolio
of exploration projects covering approximately 270,000 hectares 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 care and
maintenance services to a variety of industry and government
clients.
Denison is also the manager of Uranium Participation Corp., a
publicly traded company which invests in uranium oxide and uranium
hexafluoride.
For more information, please contact
David
Cates (416) 979-1991 ext 362
President and
Chief Executive Officer
Sophia
Shane (604) 689-7842
Investor
Relations
Follow Denison on
Twitter @DenisonMinesCo
Qualified Persons
The technical information contained in this release has been
reviewed and approved by Mr. David Bronkhorst, P.Eng, Denison's
Vice President, Operations, who is a Qualified Person in accordance
with the requirements of NI 43-101.
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: current intentions and
objectives regarding engagement with respect to the Wheeler River
project, including participation funding and the co-development of
a shared prosperity agreement; expectations with respect to
exploration and intended cooperation with ERFN with respect
thereto; development and expansion plans and objectives, generally;
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. For
example, the modelling and assumptions upon which the work plans
for exploration and/or the Wheeler River Project are based may not
be maintained after further work is completed. In addition, Denison
may decide or otherwise be required to discontinue exploration,
testing, evaluation and development work, including its advancement
and planned completion of the EA process at Wheeler River, if it is
unable to maintain or otherwise secure the necessary resources
(such as testing facilities, capital funding, regulatory approvals,
etc.) or operations are otherwise affected by COVID-19 and its
potentially far-reaching impacts. This may impact Denison’s
ability to meet the objectives stated in this press release, or the
objectives of Denison and ERFN could become misaligned. 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 13, 2020 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.
Cautionary Note to United States
Investors Concerning Estimates of Mineral Resources and Mineral
Reserves: This press release may use terms such as
“measured”, “indicated” and/or
“inferred” mineral resources and “proven”
or “probable” mineral reserves, which are terms defined
with reference to the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum (“CIM”) CIM
Definition Standards on Mineral Resources and Mineral Reserves
(“CIM Standards”). The Company’s descriptions of
its projects using CIM Standards may not be comparable to similar
information made public by U.S. companies subject to the reporting
and disclosure requirements under the United States federal
securities laws and the rules and regulations
thereunder.