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TORONTO - Denison Mines Corp. (TSX:DML) (NYSE AMERICAN:DNN), a uranium mining company with a market capitalization of $1.93 billion, announced Tuesday it is offering US$250 million in convertible senior unsecured notes due 2031, with an option for initial purchasers to buy an additional US$37.5 million in notes.
The uranium mining company plans to use proceeds to support evaluation and development of its uranium projects, including the Wheeler River Uranium Project, and for general corporate purposes. A portion of the funds will also be allocated to capped call transactions. According to InvestingPro data, Denison maintains a strong financial position with more cash than debt and a healthy current ratio of 3.94, indicating solid liquidity to support its development plans.
The notes will be senior unsecured obligations accruing interest payable semi-annually beginning March 15, 2026, and will mature on September 15, 2031. They will be convertible into common shares, cash, or a combination of both at Denison’s election, with specific conversion conditions to be determined at pricing.
In connection with the offering, Denison expects to enter into privately negotiated cash-settled capped call transactions with financial institutions to potentially reduce economic dilution upon conversion of the notes.
The offering remains subject to conditions including approval from the Toronto Stock Exchange and NYSE American. The notes and shares issuable upon conversion will carry a statutory hold period under applicable securities legislation.
The notes will be offered only to "qualified institutional buyers" under Rule 144A of the U.S. Securities Act, and have not been registered under the U.S. Securities Act or qualified by a prospectus in any Canadian province or territory.
Denison holds a 95% interest in the Wheeler River Uranium Project in northern Saskatchewan, which the company describes as the largest undeveloped uranium project in the eastern Athabasca Basin region. While the company recently received provincial environmental assessment approval for its Phoenix ISR operation, with federal approval hearings scheduled for fall 2025, InvestingPro analysis indicates the company is not yet profitable, with negative EBITDA of $45.72 million in the last twelve months. InvestingPro subscribers have access to 12 additional key insights about Denison’s financial health and growth prospects.
This announcement is based on a press release statement from Denison Mines. The company’s stock has shown strong momentum, with a 37.66% return over the past year, though current valuations suggest the stock may be trading above its Fair Value.
In other recent news, Denison Mines Corp. has announced the discovery of significant high-grade uranium mineralization at the McClean South zone in northern Saskatchewan. The drilling program, conducted by Orano Canada Inc., yielded promising results with multiple high-grade intersections. Noteworthy findings include drill hole MCS-77 with 7.51% eU3O8 over 5.4 meters, MCS-80 with 3.5% eU3O8 over 11.2 meters, and MCS-84 with 1.72% eU3O8 over 20.6 meters. This discovery is part of the McClean Lake Joint Venture, where Orano Canada Inc. holds a 77.5% ownership stake. Meanwhile, analysis from Warren AI has highlighted Ur-Energy as a uranium stock with positive upside potential within the nuclear energy sector. The assessment ranks uranium stocks based on their fair value upside potential, emphasizing Ur-Energy’s position as a noteworthy candidate. These developments come amidst renewed interest in the nuclear energy sector, drawing significant investor attention.
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