DNN Stock: Why Denison Mines Shares Are Climbing Today

Denison Mines (NYSEMKT:DNN) is gaining in trading today after it announced a secondary offering yesterday. While DNN stock is only up about 10%, trading volume of 106 million shares at time of writing was an increase of more than 1,700% over the average daily trading volume of 6.4 million.

a construction worker looks on as an excavator gets to work in a mine

Source: Shutterstock

Yesterday’s secondary offering consists of two major parts. The first is a bought deal agreement for just under 27.5 million shares of common stock, with the option to purchase an additional 4.12 million units. At a price of 91 cents per share, that puts the deal in the range of $25 million to $28.7 million.

The second part is a flow-through placement of more than 5.9 million shares at a price of 1.35 CAD, totaling approximately 8 million CAD in gross proceeds. The company said that proceeds from that secondary offering would go toward evaluation and environmental projects.

Price movement in DNN comes at a time when uranium experts are predicting a big price rebound in 2021, suggesting this play is a solid bet for growth this year.

On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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