Denison raising US$75M for physical inventory of uranium

The camp at Denison Mines’ Wheeler River uranium project in northern Saskatchewan. Credit: Denison Mines. Denison Mines (TSX: DML; NYSE: DNN) is raising US$75 million for the “strategic acquisition” of physical uranium, an initiative the company expects to support the development of its 90%-owned Wheeler River uranium project in Saskatchewan’s Athabasca Basin.

Denison aims to accumulate about 2.5 million lb. of U3O8 as a long-term investment.

The company said it expects the purchase will strengthen its balance sheet and enhance its ability to access project financing, potentially by using the holdings as collateral.

The uranium could also give Denison increased flexibility to negotiate long-term supply arrangements with future customers along with production from Wheeler River, if the in-situ recovery project is developed.“The physical uranium holdings that we expect to acquire will represent a sizeable portion of Denison’s share (2018 prefeasibility study) of the expected $290 million of initial capital costs for Wheeler […]

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