EX-99.1
2
dml_ex991.htm
PRESS RELEASE DATED DECEMBER 31, 2020
dml_ex991
Exhibit 99.1
Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
@DenisonMinesCo
PRESS
RELEASE
DENISON COMPLETES PRIVATE
PLACEMENT OF FLOW-THROUGH SHARES FOR PROCEEDS OF APPROX.
CAD$930,000
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
Toronto, ON – December 31, 2020. Denison
Mines Corp. ("Denison" or the "Company") (DML: TSX; DNN:
NYSE American) is pleased to announce that today it has completed a
non-brokered private placement of common shares that qualify as
“flow-through shares” for purposes of the Income Tax Act (Canada) (the
"Flow-Through Shares") at a price of CAD$0.86 per share, for gross
proceeds of approximately CAD$930,000 (the
"Offering").
The financing was
priced on December 16, 2020 at a 17% premium to the then 5-day
volume weighted average price (“VWAP”) of the
Company’s shares on the TSX.
David Cates,
President and CEO of Denison, commented, "This small financing was led by strong
insider participation – with Denison Directors and Officers
accounting for over 50% of the Offering, even after a significant
increase in the Company’s share price during the first half
of December. These funds were raised selectively, on a flow-through
basis and at a premium, with the primary purpose of allowing the
Company to participate in exploration on non-operated joint venture
projects, where work has been planned by the operator for early
2021. Using the proceeds from this flow-through financing to fund
exploration preserves the Company’s non-flow-through capital,
raised earlier in 2020, to fund the advancement of its flagship
Wheeler River project."
The Company has
agreed to use the gross proceeds from the sale of the Flow-Through
Shares for "Canadian exploration expenses" that also qualify as
“flow-through mining expenditures” (within the meanings
of the Income Tax
Act (Canada)), related to the Company's Canadian
uranium mining exploration projects in Saskatchewan, and renounce
such Canadian exploration expenses with an effective date of no
later than December 31, 2020.
The Company
currently intends to use the proceeds of the Offering to fund its
share of exploration expenditures expected to be incurred in early
2021 on certain of its non-operated joint venture projects and
other Denison operated projects in the Athabasca Basin
region.
The Flow-Through
Shares issued in connection with the Offering are subject to a
statutory hold period in accordance with applicable Canadian
securities legislation.
This news release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. The Flow-Through Shares have not been and will not be
registered under the United States Securities Act of 1933, as
amended, or any U.S. state securities laws and may not be offered
or sold in the United States absent registration under the United
States Securities Act of 1933, as amended, or any U.S. state
securities laws or compliance with an applicable exemption from
such registration requirements.
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 66.90% interest in the Tthe Heldeth Túé
(“THT”, formerly J Zone) and Huskie deposits on the
Waterbury Lake property. The Midwest, THT 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 and uranium
hexafluoride.
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
Offering, including the use of proceeds thereof; 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
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.