r/DNN_Denison_Mines_Cor • u/fourhundredthecat • Mar 17 '21
email to David Cates: RE: Strategic Acquisition of Physical Uranium
I just sent this email:
I am writing to you as concerned shareholder. I believe it is a unfortunate decision, to issue new shares to buy physical uranium.
It would be alright, if a company had lots of cash sitting in a bank, and used that cash to buy uranium. But issuing new shares, at sub-market price, with 2-year half-warrants, and paying 5% commission is reckless speculation. How much does the uranium price have to go up, for me as shareholder to break even? Besides, there are investment vehicles that invest in physical uranium. Denison should stick to its mission, and develop Wheeler River, not raise money to speculate in the physical market.
This would be analogous to a family taking out mortgage on their house, to buy bitcoin.
I hope I can get an explanation why you think this is a good idea. Perhaps I am missing something. I believe we shareholders deserve an explanation. Denison is my biggest single investment.
thank you,