Canadian Mining Journal


Fission back on track with twin discoveries at PLS

VANCOUVER — Fission Uranium (TSX: FCU; US-OTC: FCUUF) is back in the discovery business at the Patterson Lake South (PLS) uranium project in Saskatchewan’s Athabasca Basin following a year filled with uncertainty.

Tough market conditions raised questions over how long the company would be able to hold on to the asset, which led to a failed merger attempt with Lukas Lundin’s Denison Mines (TSX: DML; NYSE-MKT: DNN) and a half-hearted attempt at a proxy fight by a small group of retail shareholders.

That uncertainty vanished a few weeks into 2016, however, when Fission scored a white knight investment from China’s CGN Mining. The deal was announced and closed within two weeks, and involved a strategic investment by CGN wherein it subscribed for nearly 97 million shares of Fission at a healthy premium of 85¢ per share. According to chairman and CEO Dev Randhawa the financing closed so quickly because the Chinese company had been doing due diligence on PLS for “around two years.” CGN now holds a 19.9% equity stake in the company.

The influx of cash – to the tune of roughly $82 million – allows Fission to get back to what it does best: exploration. The company is in the midst of a 12,000 metre drill program at PLS this year, with around 60% of that total dedicated to expansion of its Triple R resource.

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