#Canada #Toronto #Denison Mines #Uranium Project #Convertible Notes

Denison Mines Successfully Closes $345 Million Convertible Notes Offering

Denison Mines Corp., a key player in uranium mining, exploration, and development, has proudly announced the successful closure of its recently proposed convertible senior unsecured notes offering, amounting to a remarkable US$345 million. This offering, which includes an upsizing from the initially targeted US$300 million along with a full exercise of a US$45 million option for initial purchasers, marks a significant milestone in the company's growth trajectory, enhancing its financial flexibility and supporting its future plans.

Leadership Insight

Denison's President and CEO, David Cates, expressed the company's gratitude, stating, “We are deeply humbled by the overwhelming support we received from the investment community. This offering represents a pioneering transaction for a Canadian-domiciled and TSX-listed company.” The convertible notes will mature on September 15, 2031, and may be settled in cash, shares, or a combination thereof before maturity, depending on Denison's election.

Financial Aspects of the Offering

The notes will carry an annual coupon rate of 4.25%, which means that Denison anticipates saving over US$100 million in interest payments over the life of the notes compared to traditional project debt financing alternatives. The proceeds from this offering will primarily fund evaluations and developments for Denison's uranium projects, such as the Wheeler River Uranium Project, which boasts the largest undeveloped uranium deposit in the infrastructure-rich eastern portion of Saskatchewan.

Caps on Conversion

Moreover, Denison has implemented a capped call overlay strategy, purchasing cash-settled call options to protect against increases in the conversion settlement value of the notes. This action effectively raises the conversion price from US$2.92 to a cap price of US$4.32 per share, alleviating potential equity dilution concerns.

Future Implications

This strategic financial maneuver places Denison in a robust position to make a future final investment decision (FID) while initiating construction on its flagship Phoenix In-Situ Recovery (ISR) uranium mine, contingent upon receiving necessary regulatory approvals. Denison's commitments also extend to environmental responsibilities, having received an Environmental Assessment from the Province of Saskatchewan for the Phoenix ISR operation, and is in the process of final regulatory approvals scheduled for the fall of 2025.

Company Background

Founded in 1954, Denison Mines has been at the forefront of the uranium sector, with an effective 95% interest in the Wheeler River Uranium Project, as well as stakes in various joint ventures across Canada's uranium-rich Athabasca Basin. Additionally, Denison manages a diverse portfolio that includes the McClean Lake Joint Venture and other pivotal uranium projects, ensuring its pivotal role in the future of sustainable uranium mining.

As Denison celebrates 70 years in the industry, its commitment to responsible production and development continues to shape its innovative strategies, underpinning both its past achievements and its future ambitions in uranium mining. This latest notes offering is a testament to the solid foundation Denison has built and its readiness to accommodate the increasing demand in the uranium market.

For further information regarding the notes and Denison’s upcoming projects, potential investors are encouraged to visit www.denisonmines.com to access detailed presentations and updates.

Denison Mines remains committed to transparency and upholding its values as it navigates the future landscape of the uranium industry.