Denison Mines Inc.
TSX : DEN

Denison Mines Inc.

November 18, 2005 11:38 ET

Denison Pleased With Uranium Participation Corporation's Equity Issue

TORONTO, ONTARIO--(CCNMatthews - Nov. 18, 2005) -

Not for distribution to United States newswire services or for dissemination in the United States and does not constitute an offer of the securities described herein.

Denison Mines Inc. (TSX:DEN) announced today that it is pleased with the equity offering made by Uranium Participation Corporation ("Uranium Participation Corp.") of which it is the Manager. Uranium Participation Corp. has announced that it has entered into an agreement with a syndicate of underwriters led by Sprott Securities Inc. pursuant to which the underwriters have agreed to buy and sell to the public 7,500,000 common shares of the Company at a price of CDN$6.00 per common share, representing an aggregate sum of CDN$45,000,000. Closing of the offering is expected on or about December 14, 2005. The underwriters have the right to increase the size of the issue by up to a maximum of CDN$15,000,000 and an option to purchase an additional CDN$4,500,000 to cover over allotment for a period of 30 days after the date of closing.

At least 85% of the proceeds from the offering will be used by Uranium Participation Corp. to purchase uranium oxide in concentrates (U3O8) for investment purposes.

Denison is the Manager of Uranium Participation Corp. and receives a management fee of a minimum of CDN$400,000 plus 0.3% of Uranium Participation Corp.'s net asset value between CDN$100 million and CDN$200 million and 0.2% of net asset value above CDN$200 million. In addition, we receive a commission of 1-1/2% on purchases of U3O8 it arranges for and on behalf of Uranium Participation Corp.

Denison, as Manager, has arranged for the purchase, for and on behalf of Uranium Participation Corp., of 850,000 pounds of U3O8 at an aggregate purchase price of US$28,847,500. Further purchases will be arranged to invest the balance of the proceeds of the offering.

About Denison

Denison Mines Inc. is a uranium exploration, development and production company whose principal assets are a 22.5% interest in one of the world's largest uranium facilities at McClean Lake in Northern Saskatchewan and its 25.17% interest in the Midwest Uranium Project. It is actively engaged in exploration activities in Canada's Athabasca Basin and in Mongolia. It is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and provides management services to Uranium Participation Corporation. Additional information on Denison is available on SEDAR at www.sedar.com and on Denison's website at www.denisonmines.com.

Contact Information

  • Denison Mines Inc.
    E. Peter Farmer
    President and Chief Executive Officer
    (416) 979-1991 Ext. 231
    or
    Denison Mines Inc.
    James R. Anderson
    Executive Vice-President and Chief Financial Officer
    (416) 979-1991 Ext. 372
    www.denisonmines.com