Exhibit 99.1
 |
Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
|
PRESS
RELEASE
DENISON ANNOUNCES POSITIVE ARBITRATION RULING
RELATED TO SALE OF MONGOLIAN ASSETS
Toronto, ON – July 30,
2020. Denison Mines Corp. (“Denison” or the
“Company”) (DML: TSX, DNN: NYSE American) is pleased to
announce the London Court of International Arbitration
(“LCIA”) has recently rendered a final award in favour
of Denison for the previously disclosed arbitration proceedings
between the Company and Uranium Industry a.s. (“UI”)
related to the 2015 sale by Denison to UI of its mining assets and
operations located in Mongolia.
The
arbitration panel declared that UI violated its obligations to the
Company under the related agreements, and ordered UI to pay the
Company USD$10,000,000 plus interest at a rate of 5% per annum from
November 16, 2016, plus certain legal and arbitration costs. The
arbitration panel further dismissed all other claims and
counterclaims.
Background
In
November 2015, the Company completed the sale of its mining assets
and operations located in Mongolia to UI pursuant to an amended and
restated share purchase agreement (the “GSJV
Agreement”). The primary assets at that time were the
exploration licenses for the Hairhan, Haraat, Gurvan Saihan and
Ulzit projects. On September 20, 2016, the Mineral Resources
Authority of Mongolia formally issued mining license certificates
for all four projects, triggering Denison’s right to receive
additional post-closing contingent consideration of USD$10,000,000
(collectively, the “Mining License Receivable”). The
original due date for payment of the Mining License Receivable by
UI was November 16, 2016.
Under
an extension agreement between UI and the Company, the payment due
date of the Mining License Receivable was extended from November
16, 2016 to July 16, 2017 (the “Extension Agreement”).
As consideration for the extension, UI agreed to pay interest on
the Mining License Receivable amount at a rate of 5% per year,
payable monthly up to July 16, 2017 and they also agreed to pay a
USD$100,000 instalment amount towards the balance of the Mining
License Receivable amount. The required payments were not made. The
Company served notice to UI on February 24, 2017, that it was in
default of its obligations under the GSJV Agreement and the
Extension Agreement and that the Mining License Receivable and all
interest payable thereon were immediately due and
payable.
On
December 12, 2017, the Company then filed a Request for Arbitration
between the Company and UI under the Arbitration Rules of the LCIA
in conjunction with the default of UI’s obligations under the
GSJV Agreement and Extension Agreement. The three person
arbitration panel was appointed on February 28, 2018, with
in-person hearings held in December 2019. The arbitration
panel’s findings were issued on July 27, 2020.
About Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca Basin region of northern
Saskatchewan, Canada. The Company's flagship project is the 90%
owned Wheeler River Uranium Project, which is the largest
undeveloped uranium project in the infrastructure rich eastern
portion of the Athabasca Basin region of northern Saskatchewan.
Denison's interests in Saskatchewan also include a 22.5% ownership
interest in the McClean Lake Joint Venture ('MLJV'), which includes
several uranium deposits and the McClean Lake uranium mill, which
is contracted to process the ore from the Cigar Lake mine under a
toll milling agreement, plus a 25.17% interest in the Midwest
deposits and a 66.71% interest in the J Zone and Huskie deposits on
the Waterbury Lake property. The Midwest, J Zone and Huskie
deposits are located within 20 kilometres of the McClean Lake mill.
In addition, Denison has an extensive portfolio of exploration
projects in the Athabasca Basin region.
Denison is engaged in mine decommissioning and environmental
services through its Closed Mines group, which manages Denison's
Elliot Lake reclamation projects and provides post-closure mine and
maintenance services to industry and government
clients.
Denison is also the manager of Uranium Participation Corporation, a
publicly traded company listed on the TSX under the symbol 'U',
which invests in uranium oxide in concentrates 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
|
Certain information contained in this news release constitutes
‘forward-looking information’, within the meaning of
the applicable United States and 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 news release contains forward-looking information
pertaining to the LCIA award and the implication that Denison may
recover such award; and expectations regarding its joint venture
ownership interests and the continuity of its agreements with its
partners.
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. For
example, the arbitration award in favour of Denison may not lead to
recovery of any such award or expenses. Denison believes that the
expectations reflected in its forward-looking information are
reasonable but no assurance can be given that these expectations
will prove to be accurate and results 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 factors
discussed in Denison’s Annual Information Form dated March
13, 2020 or subsequent quarterly financial reports under the
heading ‘Risk Factors’. 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 news release is expressly qualified by this
cautionary statement. Any forward-looking information and the
assumptions made with respect thereto speaks only as of the date of
this news release. Denison does not undertake any obligation to
publicly update or revise any forward-looking information after the
date of this news release to conform such information to actual
results or to changes in Denison's expectations except as otherwise
required by applicable legislation.