Denison Mines Corp 6-K, filed Nov 9, 2023
Denison Mines Corp. (DNN)
6-K
2023-11-09
For: 2023-11-09
View Original
Added on
April 07, 2026
About this 6-K
Denison Mines Corp filed this 6-K on November 9, 2023.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE
13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Date: November 9, 2023
Commission File Number: 001-33414
Denison Mines Corp.
(Name of
registrant)
1100-40 University Avenue
Toronto Ontario
M5J 1T1 Canada
(Address of
principal executive offices)
Indicate by check mark whether the registrant files
or will file annual reports under cover Form 20-F or Form
40-F.
Form
20-F ☐ Form 40-F ☒
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1): ☐
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7): ☐
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
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DENISON MINES
CORP.
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/s/ Amanda Willett
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Date:
November 9, 2023
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Amanda
Willett
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Vice
President Legal and Corporate Secretary
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FORM 6-K
EXHIBIT INDEX
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Exhibit Number
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Description
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99.1
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Press release dated November 8,
2023 |
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Exhibit 99.1
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Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
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PRESS
RELEASE
Denison Reports Financial Results from Q3'2023, Including EPS of
$0.07 Driven
by Significant Gains on Physical Uranium Holdings
Toronto, ON – November 8,
2023. Denison Mines Corp. (‘Denison’ or the
‘Company’) (TSX: DML, NYSE American: DNN) has filed its
Condensed Consolidated Financial Statements and Management’s
Discussion & Analysis (‘MD&A’) for the quarter
ended September 30, 2023. Both documents are or will be available
on the Company’s website at www.denisonmines.com,
SEDAR+ (at www.sedarplus.ca)
and EDGAR (at www.sec.gov/edgar.shtml).
The highlights provided below are derived from these documents and
should be read in conjunction with them. All amounts in this
release are in Canadian dollars unless otherwise
stated.
The
Company reported earnings per share (‘EPS’) of $0.07
for the third quarter of 2023, which was driven by the recognition
of a significant gain on the Company’s physical uranium
holdings, net of operating expenses primarily related to the
Company’s advancement of its flagship Wheeler River
Project.
David Cates, President and CEO of Denison
commented, “Denison’s
results from the third quarter reflect an incredibly active time in
the Company’s modern history. We continue to focus on the
advancement of Wheeler River’s Phoenix deposit as the first
In-Situ Recovery (‘ISR’) uranium mining project in the
Athabasca Basin.
Each quarter we are moving closer to a final investment decision
for Phoenix, with notable progress having been recently achieved
– including the continuation of front-end engineering and
design (‘FEED’), the commencement of procurement of
long-lead items, the advancement of the Environmental Impact
Statement (‘EIS’) review process, and the signing of a
landmark Shared Prosperity Agreement (‘SPA’) with
English River First Nation (‘ERFN’), in which ERFN
consents to the development of Wheeler River. The Company also
recently reported the completion of the final stage of our
history-making Phoenix ISR Feasibility Field Test
(‘FFT’), where we previously demonstrated our ability
to recover uranium bearing solution from the Phoenix deposit, and
have now further validated the processing designs and assumptions
for the future Phoenix processing plant through the successful
completion of the recovered solution management phase.
Beyond Wheeler River, we are investing in our pipeline of
development projects including the Tthe Heldeth Túé
uranium deposit (‘THT’) on the Waterbury Lake property
and the Midwest project, which are both being assessed to determine
the amenability of ISR mining. Our inaugural ISR field test at THT
achieved its planned objectives and confirms our previous
expectation that THT can be amenable to the ISR mining method and
should be considered a highly prospective small-scale uranium
development project.
Financially, our physical uranium
holdings continue to appreciate, increasing in value by more than
30% and resulting in a gain of over $63 million in the third
quarter alone, as the uranium spot price jumped from US$56/lb
U3O8
to over $73/lb U3O8.
Combined with the net proceeds of our recently completed equity
financing to fund long-lead procurement for Phoenix, the Company is
very well funded to deliver on our ambitious objectives with a
pro-forma balance of working capital and investments approaching
$400 million.”
Highlights
During the third
quarter of 2023, the Company’s earnings of $58.2 million
($0.07 per share) were driven by an impressive $63.1 million fair
value gain on the Company’s investments in uranium. The
Company’s holdings of 2.5 million pounds U3O8 were acquired in
2021, at an average price of $36.67 per pound U3O8 (US$29.66 per
pound U3O8), and have
increased in value by 171% to $99.37 per pound U3O8 (US$73.50 per
pound U3O8) for an aggregate
value of approximately $248.5 million (US$183.8
million).
■
Landmark
Shared Prosperity Agreement signed with English River First
Nation
In September
2023, Denison announced the signing of an SPA with ERFN supporting
the development and operation of Denison's Wheeler River Project in
northern Saskatchewan (the 'Project'). The SPA received support
from a substantial majority of ERFN members who participated in a
ratification vote on its key terms.
The signing of
the SPA follows years of active engagement, including a
four-month-long ERFN-led community consultation process ahead of
the ratification vote, and represents a significant milestone in
the history of both Denison's relationship with ERFN and the
Project.
The SPA
acknowledges that the Project is located within ERFN's Ancestral
Lands and provides Denison with ERFN's consent to advance the
Project. Additionally, the SPA outlines a shared recognition that
ERFN is the Knowledge Keeper of the culture, ways, customs, and
values of ERFN in relation to the environment and its Members and
reflects ERFN's desire to prioritize sustainability. Amongst other
key commitments, the SPA provides ERFN and its Members with (i) an
important role in environmental monitoring and management, and (ii)
benefits from community investment, business opportunities,
employment and training opportunities, and financial compensation.
Overall, the SPA describes a mutual commitment to maintain an open,
respectful, and cooperative relationship between Denison and ERFN
to ensure mutual prosperity as the development and operation of the
Project progresses.
■
Completion
of the Recovered Solution Management Phase of the Phoenix ISR
Feasibility Field Test
In November 2023,
the Company announced the successful completion of the recovered
solution management phase of the FFT. The FFT was highlighted by
the recovery of 14,400 lbs U3O8 dissolved in
solutions generated during the leaching and neutralization phases
of the test in late 2022. The solution recovered during the
operation of these phases was stored on site in accordance with
permit conditions and in anticipation of the commencement of the
recovered solution management phase. This final phase of the FFT
was initiated during the first half of 2023 and involves the
treatment of the recovered solution via an on-site purpose-built
treatment system. Following treatment, a uranium precipitate
product and a treated effluent were produced. The treated effluent
was tested to ensure compliance with permit conditions before being
injected into a designated subsurface area. The mineralized
precipitates have been recovered from the process with over 99.99%
efficiency and are safely stored on surface in accordance with
permit conditions.
■
Advancement
of the Phoenix Environmental Impact Statement Regulatory
Review
In August 2023,
the Company’s responses to approximately 250 comments
received in March 2023 from the Canadian Nuclear Safety Commission
(‘CNSC’) from the review of the draft the EIS were
deemed complete, allowing for the Company to advance to the second
phase of Federal review. Following the successful resolution of any
further comments from the Federal Indigenous Review Team, the
Company expects to then be in position to submit a final version of
the EIS for consideration at a future hearing of the
CNSC.
■
Inaugural
ISR Field Test Program Completed at Waterbury Lake
In November 2023,
the Company announced the completion of an inaugural ISR field test
program at THT. The program included (i) the installation of an
eight well ISR test pattern designed to collect an initial database
of hydrogeological data, (ii) testing of a permeability enhancement
technique, (iii) the completion of hydrogeologic test work,
highlighted by the achievement of hydraulic conductivity values
consistent with those from the 2020 Preliminary Economic
Assessment, and (iv) the execution of an ion tracer test which
established a 10 hour breakthrough time between the injection and
extraction wells, while also demonstrating hydraulic control of
injected solution. Overall, the program successfully achieved each
of its planned objectives.
■
Closing of
Equity Financing to Fund Long-Lead Item Procurement for Phoenix ISR
Project
In October 2023,
Denison completed an equity financing for total gross proceeds of
US$55.13 million (CAD$75.08 million). The Company intends to use
the net proceeds from the offering to fund (1) the advancement of
the proposed Phoenix in-situ recovery (‘ISR’) uranium
mining operation through the procurement of long lead items
(including associated engineering, testing and design) identified
during the ongoing FEED process and the Phoenix Feasibility Study
(‘FS’); (2) exploration and evaluation expenditures;
and (3) general corporate and administrative expenses, including
those in support of corporate development activities, and working
capital requirements.
■
Completion
of $15 million Strategic Investment in F3 Uranium
Corp.
In October 2023,
the Company entered into and completed a $15 million strategic
investment in F3 Uranium Corp. (‘F3’) in the form of
unsecured convertible debentures (the ‘Debentures’),
which carry a 9% coupon and will be convertible at Denison’s
option into common shares of F3 at a conversion price of $0.56 per
share. F3 has the right to pay up to one third of the quarterly
interest payable by issuing common shares. F3 will also have
certain redemption rights on or after the third anniversary of the
date of issuance of the Debentures and/or in the event of an F3
change of control.
About Denison
Denison Mines
Corp. was formed under the laws of Ontario and is a reporting
issuer in all Canadian provinces and territories. Denison’s
common shares are listed on the Toronto Stock Exchange (the
‘TSX’) under the symbol ‘DML’ and on the
NYSE American exchange under the symbol
‘DNN’.
Denison is a
uranium exploration and development company with interests focused
in the Athabasca Basin region of northern Saskatchewan, Canada. The
Company has an effective 95% interest in its flagship 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. In mid-2023, a Feasibility Study
was completed for Wheeler River’s Phoenix deposit as an ISR
mining operation, and an update to the previously prepared PFS was
completed for Wheeler River’s Gryphon deposit as a
conventional underground mining operation. 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
EIS submitted for regulatory and public review October
2022.
Denison’s
interests in Saskatchewan also include a 22.5% ownership interest
in the McClean Lake Joint Venture, which includes several uranium
deposits and the McClean Lake uranium mill, which is contracted to
process the ore from the Cigar Lake mine under a toll milling
agreement, plus a 25.17% interest in the Midwest Main and Midwest A
deposits and a 67.41% interest in the THT and Huskie deposits on
the Waterbury Lake property. The Midwest Main, Midwest A, THT and
Huskie deposits are located within 20 kilometres of the McClean
Lake mill.
Through its
50% ownership of JCU (Canada) Exploration Company, Ltd
(‘JCU’), Denison holds additional interests in various
uranium project joint ventures in Canada, including the Millennium
project (JCU, 30.099%), the Kiggavik project (JCU, 33.8118%) and
Christie Lake (JCU, 34.4508%).
Denison’s
exploration portfolio includes further interests in properties
covering approximately 285,000 hectares in the Athabasca Basin
region.
Technical Disclosure and Qualified Person
The technical
information contained in this press release has been reviewed and
approved by Chad Sorba, P.Geo., Denison’s Director, Technical
Services, who is a Qualified Person in accordance with the
requirements of NI 43-101.
For more information, please contact
David
Cates
(416) 979-1991 ext.
362
President and
Chief Executive Officer
Follow Denison on
Twitter
@DenisonMinesCo
Cautionary Statement Regarding Forward-Looking
Statements
Certain
information contained in this press 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 press release contains forward-looking information pertaining
to the following: projections with respect to exploration,
development and expansion plans and objectives, including the
results of the FS and the scope, objectives and interpretations of
the technical de-risking process for the proposed ISR operation for
the Phoenix deposit, including the FFT, and the interpretation of
the results therefrom; expectations with respect to future
evaluation and development of Phoenix, including front-end
engineering design and detailed design efforts; expectations
regarding regulatory applications and approvals and the elements
thereof, including the EIS; expectations regarding the performance
of the uranium market and global sentiment regarding nuclear
energy; expectations regarding Denison’s joint venture
ownership interests; and expectations regarding the continuity of
its agreements with third parties. Statements relating to
‘mineral reserves’ or ‘mineral resources’
are deemed to be forward-looking information, as they involve the
implied assessment, based on certain estimates and assumptions that
the mineral reserves and mineral resources described can be
profitably produced in the future.
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. For example, the
results and underlying assumptions and interpretations of the FS as
well as de-risking efforts such as the ISR field programs discussed
herein may not be maintained after further testing or be
representative of actual conditions within the applicable
deposits.
In addition,
Denison may decide or otherwise be required to extend its
evaluation activities and/or discontinue testing, evaluation and
development work if it is unable to maintain or otherwise secure
the necessary approvals or resources (such as testing facilities,
capital funding, etc.). 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 the
Company’s Annual Information Form dated March 27, 2023 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 press
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 press release. Denison
does not undertake any obligation to publicly update or revise any
forward-looking information after the date of this press release to
conform such information to actual results or to changes in
Denison's expectations except as otherwise required by applicable
legislation.