F3 Uranium receives $11 million investment from Denison Mines
F3 Uranium (TSXV: FUU) has received a C$15 million ($11m) strategic investment from Denison Mines (TSX: DML) to support the advancement of its Patterson Lake North property in Saskatchewan.
The investment comes in the form of a convertible debenture financing that carries 9% interest with a five-year term. The conversion price is C$0.56 per share, representing a 30% premium to F3’s current five-day volume weighted average price.
The stock was up 7.5% to C$0.43 as of 12:30 p.m. EDT Friday following the announcement, taking the company’s market capitalization to C$164.9 million ($120m).
Assuming conversion of the debentures and no other changes to F3’s outstanding share capital, the common shares issued would represent approximately 6% of the company.
“We are pleased to welcome Denison as a strategic investor in the company. Denison is a uranium industry leader, possessing a diverse array of both early- and advanced-stage assets in the Athabasca Basin,” Dev Randhawa, CEO of F3, said in a news release.
F3’s Patterson Lake North property is located within the southwestern edge of the Athabasca Basin, comprising two mineral claims covering 4,078 hectares. The current focus, the company said, is on the newly discovered high-grade JR zone, where drilling last year returned uranium oxide grades of up to 59.2%.
The project is in close proximity to Fission Uranium’s Triple R and NexGen Energy’s Arrow high-grade uranium deposits, which the company says are poised to become the next major area of development for new uranium operations in northern Saskatchewan.