Denison Mines Corp 6-K, filed Apr 1, 2021
Denison Mines Corp. (DNN)
6-K
2021-04-01
For: 2021-04-01
View Original
Added on
April 07, 2026
About this 6-K
Denison Mines Corp filed this 6-K on April 1, 2021.
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: April 1, 2021
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: April
1, 2021
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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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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
Announces Successful Procurement of
2.5 Million Lbs
U3O8
as Part of Project Finance
Initiative
Toronto – April 1, 2021 Denison Mines
Corp. (“Denison” or the “Company”)
(TSX: DML) (NYSE American: DNN) is pleased to announce that it has
successfully secured 2.5 million pounds of uranium concentrates
(“Uranium” or “U3O8”), at a
weighted average price of USD$29.61 per pound U3O8 and a total cost
of approximately USD$74 million, as part of its previously
announced project financing initiative in support of the future
advancement and/or construction of the Company’s flagship 90%
owned Wheeler River Uranium Project (“Wheeler River” or
the “Project”). All purchases were made in the uranium
spot market, with delivery dates ranging from April 2021 to October
2021.
The purchased
Uranium is expected to strengthen the Company’s balance sheet
and enhance its ability to access future project financing, with
the potential collateralization of the Uranium holdings. In
addition, the purchased Uranium could provide the Company with
increased flexibility to negotiate long-term Uranium supply
arrangements with future customers. If a future decision is made to
advance Wheeler River into construction, the Company could
eventually market its physical Uranium investments to its future
customers along with the mine production from Wheeler
River.
David Cates,
President and CEO of Denison, commented, “We’re pleased
with the result of our recent uranium procurement process –
having secured a significant quantity of material, to meet our
target of 2.5 million pounds U3O8,
at an average price of USD$29.61 per pound. This material was
secured amidst a tightening market, which has seen the spot price
of uranium rise approximately 15% within the month of March, in
response to various new sources of demand.
Upon completion of our various commitments, Denison’s
physical uranium holdings will represent a sizeable asset for the
Company, with a current market value of approximately USD$78
million (CAD$98 million), which represents greater than one-third
of the expected CAD$290 million (Denison’s share, from the
2018 Pre-Feasibility Study) of initial capital costs for Wheeler
River. This investment in Uranium enhances the long-term financial
stability of the company, as we advance towards a definitive
development decision for the Project. More specifically, the
Company’s Uranium holdings have the potential to de-risk the
process of future project financing efforts by representing a
meaningful source of collateral. Similarly, we expect that our
future customers will value, as part of potential future
discussions regarding off-take or long-term contracting
arrangements, the fact that our Company will already have an
established base of physical Uranium before achieving first
production from Wheeler River.”
About Denison
Denison is a
uranium exploration and development company with interests focused
in the Athabasca Basin region of northern Saskatchewan, Canada. The
Company's flagship project is the 90% owned 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. Denison's interests in Saskatchewan also
include a 22.5% ownership interest in the McClean Lake joint
venture ("MLJV"), which includes several uranium deposits and the
McClean Lake uranium mill that is contracted to process the ore
from the Cigar Lake mine under a toll milling agreement, plus a
25.17% interest in the Midwest and Midwest A deposits, and a 66.90%
interest in the Tthe Heldeth Túé (“THT,”
formerly J Zone) and Huskie deposits on the Waterbury Lake
property. Each of Midwest, Midwest A, THT and Huskie are located
within 20 kilometres of the McClean Lake mill.
Denison is
engaged in mine decommissioning and environmental services through
its Closed Mines group (formerly Denison Environmental Services),
which manages Denison's Elliot Lake reclamation projects and
provides post-closure mine care and maintenance services to a
variety of industry and government clients.
Denison is also
the manager of Uranium Participation Corp., a publicly traded
company which invests in uranium oxide and uranium
hexafluoride.
For more information, please contact
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David Cates
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(416) 979-1991 ext.
362
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President and Chief Executive
Officer
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Sophia Shane
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(604) 689-7842
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Investor
Relations
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Follow Denison on
Twitter
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@DenisonMinesCo
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Cautionary Statement Regarding Forward-Looking
Statements
Certain
information contained in this news 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 news release contains
forward-looking information pertaining to: the commitments to
purchase uranium; the strategic objectives of Denison,
including the potential advancement of the Wheeler River project
through project evaluation and de-risking to construction and
production and the Company’s expectations regarding
negotiating supply contracts with future customers; the potential
benefits to Denison of holding physical uranium, including as
financial de-risking, collateral and/or appreciation in value;
Denison’s joint venture interests, and the continuation of
its contracts with third parties.
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
commitments to acquire uranium are subject to entering into formal
purchase and sale agreements with the sellers of such uranium, and
the parties could fail to agree to, and execute, such agreements;
if market conditions remain volatile and/or COVID-19 mitigation
measures result in more social and economic disruptions, Denison
may not be able to pursue its evaluation and environmental
assessment activities necessary to advance the Wheeler River
project, which could have significant impacts on Denison. In
addition, the currently anticipated evaluation and environmental
assessment activities may not be maintained after further testing
or Denison may decide or otherwise be required to alter 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.) and
the Company may not be able to, or may choose not to, proceed to a
FS, construction or production for Wheeler River. Should a decision
be made to advance to a FS, construction or production, the costs
to Denison of doing so could materially exceed expectations as set
forth in the Wheeler PFS. Should Wheeler River not proceed as
currently anticipated, the potential benefits of holding physical
uranium described herein, such as use as collateral, may never be
realized. Denison believes that the expectations reflected in this
forward-looking information are reasonable and 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 Denison’s Annual
Information Form dated March 29, 2021 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 news
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 news release. Denison
does not undertake any obligation to publicly update or revise any
forward-looking information after the date of this news release to
conform such information to actual results or to changes in
Denison's expectations except as otherwise required by applicable
legislation.