SASKATOON – Fission Uranium Corp. [FCU-TSX; FCUUF-OTCQX; 2FU-FSE] has announced details of a $75 million bought deal financing and said it will use the proceeds to fund exploration and development at its flagship Patterson Lake South property in Saskatchewan, which hosts the high-grade Triple R uranium deposit.
The company said an underwriting syndicate has agree to purchase on a bought deal basis 63.5 million common shares at $1.18 per share. It said the underwriters have been granted a green shoe option to purchase up to an additional 15% of the number of common shares sold in the offering to cover over-allotments. That option is exercisable for 30 days after the closing of the offering, which is expected to occur on February 12, 2024.
Fission shares rose 0.77% or $0.01 to $1.30 on volume of 3.31 million. The shares trade in a 52-week range of $1.33 and 54 cents.
News of the financing follows a resurgence in the price of uranium as nuclear power is once again embraced by countries who are looking for ways to cut carbon emissions and ease concerns about supply.
Details of the offering were announced after the close of trading on September 25, 2023, when Fission shares closed at 93 cents. The shares are currently trading in a 52-week range of $1.00 and 54 cents. The shares have rallied from the 75-cent level in early September.
Fission was in the news recently when it submitted an application for a license to construct a uranium mine and mill facility at its Patterson Lake South property in Saskatchewan, which hosts the high-grade Triple R uranium deposit.
The 31,039-hectare PLS project is 100%-owned and operated by Fission. The project is accessible by road with primary access from all-weather Highway 955, which runs north of the former Cluff Lake mine and passes the NexGen Energy Ltd. [NXE-TSX, NYSE] Arrow deposit located 3.0 kilometres to the east.
Fission recently published the results of a feasibility study outlining the potential for Triple R to become one of the lowest cost uranium mines in the world.
Highlights of the study include a construction timeline of three years with an estimated initial capital cost of $1.15 billion. The study also envisages an increased time line of 10 years with a life of mine production of 90.9 million pounces of U3O8 at an average unit operating cost of $13.02 a pound (US$10 a pound).
The study is based on an indicated resource of 2.7 million tonnes of 1.94% U308 and 0.61 g/t gold or 114.9 million pounds of uranium and 52,700 ounces of gold in five zones.