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.
Furthermore, the company has 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). This will also be used by the company 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.
