Denison Announces Closing of US$345 Million Convertible Senior Notes Offering

Core Viewpoint - Denison Mines Corp. has successfully closed an offering of convertible senior unsecured notes amounting to US$345 million, which positions the company favorably for future investments and construction of its flagship uranium mine in Saskatchewan [1][3]. Offering Details - The offering includes US$300 million from an upsized offering and US$45 million from the full exercise of an option granted to initial purchasers [1]. - The notes have an annual coupon rate of 4.25%, estimated to save Denison over US$100 million in interest payments compared to traditional project debt financing [2][6]. - Approximately US$333 million of net proceeds will be available after deducting commissions and fees [6]. Financial Strategy - The initial conversion price for the notes is set at US$2.92 per share, with an effective conversion price raised to US$4.32 per share due to a capped call overlay strategy [2][6]. - Denison purchased cash-settled call options for approximately US$35.36 million to protect against equity dilution [2][6]. Future Plans - The proceeds from the offering will support the evaluation and development of uranium projects, including the Wheeler River Uranium Project and general corporate purposes [6]. - The company is nearing completion of permitting efforts for the Phoenix ISR operation, with regulatory approvals anticipated [12]. Company Overview - Denison is focused on uranium mining, exploration, and development, with significant interests in the Athabasca Basin region of Saskatchewan [11]. - The company holds a 95% interest in the Wheeler River Uranium Project, which is the largest undeveloped uranium project in the region [11].