Denison raises $31 million in financings, shares up

Wheeler River could become Canada’s first in-situ recovery uranium mine. (Image courtesy of Denison Mines)

Denison Mines (TSX: DML) is planning to raise a total of $31.3 million from two separate financings to advance its uranium projects in the Athabasca Basin region of northern Saskatchewan.

The company has arranged a bought deal financing of units priced at $0.91 per unit for gross proceeds of $25 million. Each unit comprises one common share in the capital of the company and one-half of a common share purchase warrant. Each whole warrant is exercisable to acquire an additional common share at a price of $2.00 for 24 months after issuance.

Proceeds of the unit offering will be used to fund evaluation and environmental assessment activities on Denison’s Wheeler River uranium project

Proceeds of the unit offering will be used to fund evaluation and environmental assessment activities on Denison’s Wheeler River uranium project, including the proposed Phoenix in-situ recovery uranium mining operation.

Denison has also arranged a private placement of common shares priced at C$1.35 per share for gross proceeds of approximately C$8 million (about $6.3 million) to be used for exploration purposes.

Denison’s flagship asset is the 90% owned Wheeler River project, the largest undeveloped uranium project in the eastern portion of the Athabasca Basin. The company also holds a 22.5% ownership interest in the McClean Lake joint venture, which includes several uranium deposits and the McClean Lake uranium mill.

Shares of Denison Mines jumped 18.2% to C$1.52 by 12:30 p.m. in Toronto. The stock hit a five-year high of C$1.69 earlier in the session. The company has a market capitalization of C$1.02 billion.

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