Denison raising $75M to advance Phoenix plans at Wheeler River uranium project

Denison Mines (TSX:DML; NYSE:DNN) has entered into an agreement with Cantor Fitzgerald Canada for the sale of 37 million Denison shares on a bought deal basis to raise $75 million (US$55.1 million). The share price is $2.03 (US$1.49).

The underwriters have also been granted an over-allotment option of up to a further 5.6 million shares. If the over-allotment is exercised, Denison will reap up to $11.2 million (US$8.3 million). Denison will pay the underwriters a cash commission equal to 4.75% of the gross proceeds of the offering.

Denison intends to use the net proceeds of the offering to advance the Phoenix in situ uranium mining operation, for exploration and evaluation expenditures, and for general corporate and administrative expenses. The company said in a release that this agreement, taken together with existing financial resources including those from prior financings, will be sufficient to advance the Phoenix deposit to a final production decision.

The Wheeler River project is a joint venture between Denison (90% and operator) and JCU (Canada) Exploration Co. (10%). The project is host to the high-grade Phoenix and Gryphon uranium deposits, discovered by Denison in 2008 and 2014, respectively.

In August 2023, Denison filed a feasibility study for in situ recovery (ISR) at the Phoenix deposit and a cost update to the 2018 prefeasibility study for conventional underground mining of the basement-hosted Gryphon uranium deposit. The company believes that based on the respective studies, both deposits have the potential to be competitive with the lowest cost uranium mining operations in the world.

Permitting efforts for the planned Phoenix ISR operation commenced in 2019 and have advanced significantly, with licensing in progress and a draft environmental impact statement submitted for regulatory and public review in October 2022.

Assuming the use of ISR methods, total measured and indicated resources at the Phoenix deposit are 280,200 tonnes averaging 11.4% uranium oxide (U₃O₈) and containing 70.5 million lb. U₃O₈. A further 5.6 million tonnes at 2.6% U₃O₈ are included in the inferred resource.

Read the Phoenix feasibility study at www.DenisonMines.com.