Denion Mines Reports 2015 Second Quarter Results

Denison Mines Corp. (TSX:DML,NYSEMKT:DNN) announced its results for the six month period ended June 30, which showed a net loss of $13.9 million or $0.03 per share.
Highlights:

• Executed agreement with Fission Uranium Corp. (“Fission”) to create a Canadian focused and diversified uranium company: On July 27, 2015, Denison entered into an agreement to combine its business with Fission by way of a court approved plan of arrangement (the “Arrangement”). The combined company will feature an exploration and development portfolio that will include Fission’s 100% owned Patterson Lake South Project (host to the Triple R deposit) and Denison’s 60% owned Wheeler River Project (which hosts the Phoenix deposit and Gryphon discovery).
• Agreed to the sale of Mongolian interests: On July 29, 2015, Denison entered into a definitive share purchase agreement with Uranium Industry a.s. (“UI”), of the Czech Republic, whereby UI will acquire all of Denison’s interest in mining assets and operations located in Mongolia in exchange for cash consideration of $20 million (“the GSJV sale”). Pursuant to the terms of the agreement, Denison will receive an initial payment of $250,000 on closing, expected to occur on or about September 8, 2015, and a deferred payment of $19,750,000 by November 30, 2015.
• Completed CAD$15 million flow-through financing to fund Canadian exploration activities in 2016: In May 2015, the Company completed a private placement offering of 12,000,000 common shares issued on a flow-through basis, at a price of CAD$1.25 per share, for aggregate proceeds to Denison of CAD$15 million.
• Stream of toll milling revenue continued to grow in the first half of 2015: The McClean Lake mill, in which Denison holds a 22.5% interest, packaged approximately 3.1 million pounds U₃O₈ in the first half of 2015 for the Cigar Lake Joint Venture (“CLJV”), generating toll milling revenues for Denison of $0.9 million. Production ramped up significantly in the early part of the second quarter and is on track to meet the target of six to eight million packaged pounds of U₃O₈ this year. The Company’s share of toll milling revenues for the year is expected to be approximately $2.1 million.
• Continued Exploration Success at the Wheeler River Property: The summer drilling program is currently in progress with 36 drill holes planned, totaling approximately 24,000 metres. The Gryphon zone of uranium mineralization has the potential to add significantly to the estimate of mineral resources at Wheeler River, which already includes the high grade Phoenix uranium deposit.
• A total of 14,113 metres of drilling has been completed in 18 drill holes at Wheeler River, to date, as part of the Company’s summer exploration program. Eight of the drill holes were at the Gryphon Zone and were designed to complete the 50 metre x 50 metre spaced drill pattern and determine the extent of the mineralization in the down-dip and down-plunge directions. The best result was in drill hole WR-604, which intersected 3.8% eU₃O₈ over 4.7 metres (779.2 to 783.9 metres), followed by 8.4% eU₃O₈ over 1.1 metres (790.0 to 791.1 metres), which extended mineralization in the down-dip direction. An initial estimate of mineral resources at the Gryphon zone is expected to be prepared before the end of the year.
• Discovered new zone of uranium mineralization at Murphy Lake: The first drill hole of a planned four drill hole program discovered uranium mineralization at Murphy Lake. Drill hole MP-15-03 intersected 0.2% eU₃O₈ over 6.9 metres (270.0 to 276.9 metres) at the sub-Athabasca unconformity.

Outlook:

The Company has completed a successful winter exploration program in Canada and resumed drilling during the first week of June 2015, as part of a summer exploration program focused on advancing certain high priority projects. In general, the Company’s exploration, development and operation plans for 2015 remain unchanged at the end of the first half of the year. The outlook for the remainder of the year, however, will change as a result of the Arrangement Agreement executed with Fission. The impact of the Arrangement has not yet been factored into the outlook for 2015.
Given the significant devaluation of the Canadian dollar in the first quarter of 2015, the Company’s Previous Outlook includes revisions to its budgeted USD$ to CAD$ foreign exchange rate to 1.24 from 1.12. The Current Outlook has been revised to reflect additional spending in Mongolia incurred in connection with the GSJV sale.

Click here to read the full Denison Mines Corp. (TSX:DML,NYSEMKT:DNN) press release.