Denison Mines has announced the pricing of its $300m (C$414.05m) offering of convertible senior unsecured notes due in 2031, with the potential for an additional $45m purchase by initial buyers, to support its uranium development projects.
The notes will carry a semi-annual interest rate of 4.25%.
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Denison plans to allocate the net proceeds towards the evaluation and development of initiatives such as the Wheeler River uranium project, and for general corporate purposes.
The Wheeler River project is located on the eastern side of the Athabasca Basin in northern Saskatchewan, Canada.
The initial conversion rate for the notes has been set at 342.9355 shares per $1,000 principal amount, equating to an initial conversion price of approximately $2.92 per share. This rate is at a 35% premium over the closing sale price of the shares on 12 August 2025 and may be adjusted under certain conditions.
Denison retains the right to redeem the notes in specific scenarios, while holders have the right to demand repurchase upon certain events.
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By GlobalDataThe offering is expected to close around 15 August 2025, subject to standard closing conditions.
The company also intends to fund capped call transactions with a portion of the proceeds or existing cash reserves.
In connection with the notes’ pricing, Denison has entered into capped call transactions with initial purchasers and financial institutions. These transactions aim to minimise potential dilution from the conversion of the notes and offset any excess cash payments required upon conversion, up to a set limit.
The capped call counterparties have disclosed plans to engage in derivative transactions related to the company’s shares alongside or shortly after the notes’ pricing. These actions could influence the market price of Denison’s shares or the notes.
Additionally, the counterparties may adjust their hedge positions through various derivatives or secondary market transactions, which could also impact the market price and affect noteholders’ conversion outcomes.
The offering is contingent upon receiving all necessary approvals, including from the Toronto Stock Exchange and the NYSE American.
