Form 6-K DENISON MINES CORP. For: Jan 10
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
Date: January 10, 2017
Commission File Number: 001-33414
Denison Mines Corp.
(Translation of registrant’s name into
English)
1100-40 University Avenue, Toronto Ontario, M5J 1T1
Canada
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form
40-F.
Form
20-F ☐ Form 40-F ☒
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1): ☐
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7): ☐
Signatures
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
|
|
|
|
|
|
|
|
|
|
|
Denison Mines Corp.
|
||
|
|
|
||||
|
|
|
|
/s/ Amanda Willett
|
||
Date:
January 10, 2017
|
|
|
|
Amanda
Willett
|
||
|
|
|
|
Corporate Counsel and Corporate Secretary
|
EXHIBIT
INDEX
Exhibit Number
|
|
Description
|
|
|
|
99.1
|
|
Press
release dated January 10,
2017
|
Denison
Mines Corp.
1100
– 40 University Ave
Toronto,
ON M5J 1T1
www.denisonmines.com
@DenisonMinesCo
PRESS RELEASE
DENISON
EXECUTES AGREEMENT TO INCREASE OWNERSHIP
OF WHEELER RIVER
PROJECT UP TO 66%
Toronto, ON – January 10, 2017 Denison Mines Corp.
(“Denison” or the “Company”) (DML: TSX,
DNN: NYSE MKT) is pleased to report that it has executed an
agreement with the partners of the Wheeler River Joint Venture
(“WRJV”) that will result in an increase in
Denison’s ownership of the Wheeler River project to up to
approximately 66% (currently 60%) by the end of 2018 (the
“Agreement”). The Wheeler River property is located in
the infrastructure rich eastern portion of the Athabasca Basin, and
is a joint venture between Denison (60% ownership and operator),
Cameco Corp. (“Cameco”) (30% ownership), and JCU
(Canada) Exploration Limited (“JCU”) (10% ownership),
(collectively, the “JV Parties”).
Under
the terms of the Agreement, the JV Parties have agreed to allow for
a one-time election by Cameco to fund 50% of its ordinary share of
joint venture expenses in 2017 and 2018. The shortfall in
Cameco’s contribution will be funded by Denison, in exchange
for a transfer of a portion of Cameco’s interest in the WRJV.
Accordingly, Denison’s share of joint venture expenses will
be 75% in 2017 and 2018, and Cameco and JCU’s share of joint
venture expenses will be 15% and 10%, respectively.
Denison’s
President & CEO, David Cates, commented, “This Agreement is of considerable significance
to Denison. Following the discovery of the Gryphon deposit in 2014,
the Wheeler River project has emerged as the largest high-grade
undeveloped uranium project in the eastern portion of the Athabasca
Basin. It is incredibly unique to have an opportunity to increase
our controlling interest, to up to 66%, through the funding of
further exploration and development activities at a project as
advanced as Wheeler River. We value the support and encouragement
we have received from our JV partners in recent years and this
Agreement speaks to the willingness of all of the partners to
cooperate towards a common goal of moving Wheeler River
forward.”
In
connection with the Agreement, the JV Parties have also approved a
CAD$12.5 million work program and budget for the WRJV in 2017, of
which Denison’s share will be CAD$9.4 million (representing
75%). Denison, as operator of the WRJV, has also agreed to propose
a work program and budget for 2018 that will not exceed
approximately CAD$15.6 million (being 125% of the approved 2017
budget), and to allocate an aggregate of at least CAD$4 million in
joint venture expenditures during 2017 and 2018 to explore regional
exploration target areas on the Wheeler River property. Regional
exploration target areas include targets located outside of the
area immediately surrounding the Gryphon and Phoenix
deposits.
Based
on the approved work program and budget for the WRJV in 2017
(CAD$12.5 million), and the maximum work program and budget for
2018 (CAD$15.6 million), Denison expects that its ownership
interest in the Wheeler River project will increase to
approximately 66% by December 31, 2018.
About Wheeler River
The Wheeler River property is a joint venture between Denison (60%
and operator), Cameco Corp. (30%), and JCU (Canada) Exploration
Company Limited (10%), and is host to the high-grade Gryphon and
Phoenix uranium deposits discovered by Denison in 2014 and 2008,
respectively. The Gryphon deposit is hosted in basement rock and is
currently estimated to contain inferred resources of 43.0 million
pounds U3O8 (above a cut-off grade of 0.2%
U3O8) based on 834,000 tonnes of
mineralization at an average grade of 2.3% U3O8.
The Phoenix unconformity deposit is located approximately 3
kilometres to the southeast of Gryphon and is estimated to include
indicated resources of 70.2 million pounds U3O8
(above a cut-off grade of 0.8% U3O8)
based on 166,000 tonnes of mineralization at an average grade of
19.1% U3O8, and is the highest grade undeveloped
uranium deposit in the world.
On April 4th, 2016, Denison announced the results of a Preliminary
Economic Assessment (“PEA”) for the Wheeler River
Project, which considers the potential economic merit of
co-developing the high-grade Gryphon and Phoenix deposits as a
single underground mining operation. The PEA returned a base case
pre-tax Internal Rate of Return ("IRR") of 20.4% based on the
current long term contract price of uranium (US$44.00 per pound
U3O8), and Denison's
share of estimated initial capital expenditures ("CAPEX") of
CAD$336M (CAD$560M on 100% ownership basis). Exploration results
from the winter and summer 2016 drilling program have not been
incorporated into the resource estimate or the PEA. The PEA is
preliminary in nature and includes inferred mineral resources that
are considered too speculative geologically to have the economic
considerations applied to them to be categorized as mineral
reserves, and there is no certainty that the preliminary economic
assessment will be realized. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. On
July 19th, 2016 Denison announced the initiation of a
Pre-Feasibility Study ("PFS") for the Wheeler River property and
the complimentary commencement of an infill drilling program at the
Gryphon deposit to bring the inferred resources to an indicated
level of confidence.
The disclosure of a scientific or technical nature contained in
this news release was prepared by Dale Verran, MSc, Pr.Sci.Nat.,
Denison's Vice President, Exploration, who is a Qualified Person in
accordance with the requirements of NI 43-101.
About
Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca Basin region of northern
Saskatchewan. Including its 60% owned Wheeler River project, which
hosts the high grade Phoenix and Gryphon uranium deposits,
Denison's exploration portfolio consists of numerous projects
covering over 350,000 hectares in the infrastructure rich eastern
Athabasca Basin. Denison's interests in Saskatchewan also include a
22.5% ownership interest in the McClean Lake joint venture, which
includes several uranium deposits and the McClean Lake uranium
mill, which is currently processing ore from the Cigar Lake mine
under a toll milling agreement, plus a 25.17% interest in the
Midwest deposit and a 63.01% interest in the J Zone deposit on the
Waterbury Lake property. Both the Midwest and J Zone deposits are
located within 20 kilometres of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental
services through its Denison Environmental Services division and is
the manager of Uranium Participation Corp., a publicly traded
company which invests in uranium oxide and uranium
hexafluoride.
For more information, please contact
David
Cates
|
(416) 979-1991 ext.
362
|
President and Chief
Executive Officer
|
|
|
|
Sophia
Shane
|
(604)
689-7842
|
Investor
Relations
|
|
|
|
Follow Denison on Twitter
|
@DenisonMinesCo
|
Cautionary
Statement Regarding Forward-Looking Statements
Certain information contained in this press release constitutes
“forward-looking information”, within the meaning of
the United States Private Securities Litigation Reform Act of 1995
and similar Canadian legislation concerning the business,
operations and financial performance and condition of Denison.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as “plans”,
“expects”, “budget”,
“scheduled”, “estimates”,
“forecasts”, “intends”,
“anticipates” or “believes”, or the
negatives and/or variations of such words and phrases, or state
that certain actions, events or results “may”,
“could”, “would”, “might” or
“will be taken”, “occur”, “be
achieved” or “has the potential to”. In
particular, this press release contains forward-looking information
pertaining to the following: the Agreement with the JV Parties, and
the ability to derive the anticipated benefits
thereof; exploration
(including drilling) and evaluation activities, plans and
objectives; potential mineralization of drill targets; the
estimates of Denison's mineral resources, the results of its PEA
and plans with respect to the PFS.
Forward looking statements are based on the opinions and estimates
of management as of the date such statements are made, and they are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of Denison to be materially different from those
expressed or implied by such forward-looking statements. Denison
believes that the expectations reflected in this forward-looking
information are reasonable but there can be no assurance that such
statements will prove to be accurate and may differ materially from
those anticipated in this forward looking information. For a
discussion in respect of risks and other factors that could
influence forward-looking events, please refer to the “Risk
Factors” in Denison’s Annual Information Form dated
March 24, 2016 available under its profile at www.sedar.com
and in its Form 40-F available
at www.sec.gov/edgar.shtml.
These factors are not, and should not be construed as being,
exhaustive.
Accordingly, readers should not place undue reliance on
forward-looking statements. The forward-looking information
contained in this press release is expressly qualified by this
cautionary statement. Denison does not undertake any obligation to
publicly update or revise any forward-looking information after the
date of this press release to conform such information to actual
results or to changes in its expectations except as otherwise
required by applicable legislation.
Cautionary Note to United States
Investors Concerning Estimates of Measured, Indicated and Inferred
Mineral Resources: This press release may use the terms
“measured”, “indicated” and
“inferred” mineral resources. United States investors
are advised that while such terms are recognized and required by
Canadian regulations, the United States Securities and Exchange
Commission does not recognize them. “Inferred mineral
resources” have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of inferred mineral resources may not form the
basis of feasibility or other economic studies. United States
investors are cautioned not to assume that all or any part of
measured or indicated mineral resources will ever be converted into
mineral reserves. United States investors are also cautioned not to
assume that all or any part of an inferred mineral resource exists,
or is economically or legally mineable.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Share Buyback Transaction Details April 18 – April 24, 2024
- PolyU forms global partnership with ZEISS Vision Care to expand impact and accelerate market penetration of patented myopia control technology
- SOTI Report Reveals Emergency Care is Suffering Due to 92% of Global Emergency Service Teams Experiencing Mobile Technology Challenges
Create E-mail Alert Related Categories
SEC FilingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!