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The underwriter has a agreed to purchase, on a private placement basis, 4,950,495 flow-through common shares at a price of C$1.01 per share, for total a of approximately C$5-million.
Canadian uranium producer Denison Mines (TSX:DML, NYSEAMERICAN:DNN) has announced that it has entered into an agreement with Cantor Fitzgerald Canada Corporation as a sole bookrunner and lead underwriter.
The underwriter has a agreed to purchase, on a private placement basis, 4,950,495 flow-through common shares at a price of C$1.01 per share, for total a of approximately C$5-million.
As quoted from the pres release:
The company has granted the underwriters an option to increase the gross proceeds of the offering by up to 10 percent, exercisable in whole or in part at any time up to two business days prior to the closing date. The underwriters will seek to arrange for substituted purchasers for the Flow-Through Shares in one or more provinces of Canada.
The closing of the offering is expected to occur on or about November 23, 2018 and is subject to the completion of formal documentation and receipt of regulatory approvals, including the approval of the Toronto Stock Exchange and the NYSE American. The Flow-Through Shares issued in connection with the Offering will be subject to a statutory hold period in accordance with applicable securities legislation.
The company intends to use the gross proceeds from the sale of the Flow-Through Shares for “Canadian exploration expenses” (within the meaning of the Income Tax Act (Canada)), related to the company’s Canadian uranium mining exploration projects in Saskatchewan. The company has also agreed to renounce such Canadian exploration expenses with an effective date of no later than December 31, 2018.
