Dual-listed Denison Mines said on Friday it has closed a $345-million offering of convertible senior unsecured notes due 2031, positioning the Canadian uranium developer to advance its flagship Phoenix in-situ recovery (ISR) project in northern Saskatchewan.

The financing included the previously upsized $300-million offering and the full exercise of a $45-million option granted to initial purchasers. Net proceeds are expected to total about $333-million after fees and commissions, the company said.

“Denison is humbled by the overwhelming support we received from the convertible note investment community for this offering of a ‘US-Style’ convertible note with a cash-settled capped call overlay – a novel transaction for a Canadian-domiciled and TSX-listed company,” Denison president and CEO David Cates said in a statement.

The notes carry a yearly coupon of 4.25%, payable semi-annually, and mature on September 15, 2031. “With an annual coupon rate of 4.25%, the notes are estimated to save Denison over $100-million in interest payments over the life of the instrument when compared to the range of expected interest payments associated with traditional project debt financing alternatives,” Cates said.

The initial conversion rate of 342.9355 shares per $1 000 principal amount equates to $2.92 a share, a 35% premium to Denison’s August 12 closing price. A capped call overlay raises the effective conversion price to $4.32 a share, nearly double the market price at the time of pricing. Denison spent about $35.36-million to purchase the capped calls.

The company said the proceeds will support evaluation and development of its uranium projects, including the Wheeler River project, and for general corporate purposes.

“Overall, the proceeds of the offering put Denison in an excellent financial position to make a future final investment decision and to commence construction, following the anticipated receipt of upcoming regulatory approvals, for the company’s flagship Phoenix ISR uranium mine in northern Saskatchewan,” Cates said.

Denison is focused on uranium exploration and development in Canada’s Athabasca basin, one of the world’s top uranium-producing regions.