F3 Uranium Corp. (TSXV: FUU | OTCQB: FUUF) has entered into a binding agreement with Denison Mines Corp. (TSX: DML | NYSE American: DNN) for a C$15M strategic investment from Denison to support its Patterson Lake North (PLN) property in Saskatchewan, Canada.
“We are pleased to welcome Denison as a strategic investor in the company,” Dev Randhawa, CEO of F3 commented. “Denison is a uranium industry leader, possessing a diverse array of both early and advanced-stage assets in the Athabasca Basin, where F3 is currently advancing the PLN property. We highly value Denison’s perspectives on uranium exploration and look forward to pursuing a productive relationship.”
The investment comes in the form of a convertible debenture financing that carries a 9% interest with a five-year term. The debentures will be convertible at a conversion price of C$0.56, representing a 30% premium to F3’s current five-day volume weighted average price. Assuming conversion of the debentures and no other changes to F3’s share capital, the shares issued would represent approximately 6% of the company.
The interest will represent a 30% premium to F3’s current five-day volume weighted average price. F3 will have the right to pay up to one-third of the interest in common shares issued at a price per share equal to the volume-weighted average trading price of F3’s shares on the TSX Venture Exchange (the TSXV) for the 20 trading days ending on the day prior to the date on which interest is due.
The gross proceeds of the debentures will be used primarily for exploration and development of the PLN property, and for general working capital purposes.
For further information, please visit: www.f3uranium.com
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