F3 Uranium Corp (TSXV: FUU) has secured a strategic investment from that of Denison Mines (TSX: DML) for the further exploration of its Patterson Lake North property in the Athabasca Basin of Saskatchewan.
The strategic investment amounts to $15 million, and comes in the form of unsecured convertible debentures. The debentures contain a conversion price of $0.56 per share, a 30% premium to the five day average price of F3, and carry a 9% coupon, payable quarterly. The debt has a five year term, and are convertible at Denison’s option.
“F3’s technical team has an incredible track record of exploration success including the discovery of the JR Zone on the Patterson Lake North property, which represents one of the top new uranium discoveries globally. We are pleased to be investing in F3, supporting the further assessment of the PLN property, and providing Denison shareholders with exposure to this exciting new discovery in the Athabasca Basin,” commented David Cates, CEO of Denison Mines.
Assuming full conversion of the debt, the shares would represent roughly 6% of the company. The investment is slated to be completed on October 18, 2023.
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F3 Uranium’s Patterson Lake North property, also referred to as PLN, hosts the JR Zone, which was discovered in the fall of 2022. The zone has been described as being high grade, with a winter 2023 drill program including hole PLN23-060, which intersected 9.4% U3O8 over 14.5 metres, including 2.5 metres of 45.6% U3O8.
F3 Uranium last traded at $0.40 on the TSX Venture.
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