The market capitalization of Denison and Fission on a combined basis is anticipated to be approximately CAD$900 million. Upon completion of the Transaction, the combined company, to be named "Denison Energy Corp.", will be approximately 50% owned by each of Denison's and Fission's existing shareholders on a fully-diluted in-the-money basis.
#FISSION URANIUM MINES PLUS#
Subject to the terms set out in the Binding Agreement, Fission common shareholders will receive 1.26 common shares of Denison for each common share of Fission held plus $0.0001 per share in cash. Let's have a look at the terms of this controversial merger, announced on July 6, 2015: I am curious about the outcome of step out exploration on other EM conductors like for example Area A. The Triple R deposit isn't the only prospective area of the Patterson Lake South project, as can be seen here (taken from company presentation): The ongoing exploration program will probably expand the existing resource, and hopefully extend the deposit on land in a meaningful way, making this deposit even more attractive for uranium majors. Since Fission has discovered the step out zone R600W on land, I see the option coming up of a land-based starter pit and an underground mine. If an open pit concept would be an issue, an underground development wouldn't be a problem either, as the high grade part would support a profitable operation in that case as well.
However, as this area is more remote than the Patterson Lake, permitting could be difficult and take time for the Triple R deposit. Building a dam in a lake for a mining operation has been done before, for example at the Diavik Mine in up to 32m of water. The deposit is located under Patterson Lake, but this isn't a deep lake (6-10m), so I don't expect any technical difficulties. As open pit operations are always more profitable compared to underground operations, I expect a lot from the upcoming PEA. This is very rare these days, as the existing high grade open pit operations at the Athabasca Basin are mined out already. These high grade parts, totaling 58.2M lbs, are the most interesting part of the deposit, as economics of the upcoming PEA (Q3 2015) will thrive on it, especially as these parts are relatively near surface, starting at -50m. The highly anticipated January 2015 maiden NI43-101 resource estimate for Fission's Triple R deposit superseded most analyst's predictions, and showed a world class indicated resources of 79.6M lbs at 1.58% U3O8, including the most interesting high grade part of 44.3M lbs at 18.21% U3O8, and inferred resources of 25.9M lbs at 1.3% U3O8, including a high grade part of 13.9M lbs at 26.35% U3O8. Patterson Lake is located very close to the very prolific Athabasca Basin, home of many uranium projects and mines, the most famous ones shown here:Īthabasca Basin major deposits and mines Fission Uranium has made the uranium discovery of the decade in the Athabasca Basin, Canada, at Patterson Lake, and President and COO Ross McElroy got the PDAC 2014 Bill Dennis Award for exploration success to prove it, and together with Chairman and CEO Dev Randhawa, he was named Northern Miner Person of the year 2013 as well because of it. This company trades on the mainboard in Canada as FCU.TO., but can also be traded in the US by ticker FCUUF, on much lower volume.Īll presented tables are own material, unless stated otherwise.Īll currencies mentioned are in USD, unless stated otherwise.įirst a summarized background on things. The markets already voted against it, as both stocks were sold off in the days following the announcement, and I will try to convince remaining shareholders to vote against this deal, as I don't see any benefits coming out of it anytime soon. Not all is lost yet, as shareholders still have to vote on the proposed merger. It appears Fission and Denison managements have other plans. Not in the least caused by the fact that Fission was a large holding of mine since late last year, convinced as I was that this stock wouldn't go anywhere but in the direction of a fine buyout, after building out the already superior Triple R resource as much as possible. The news of arguably the best uranium explorer around, being Fission Uranium ( OTCQX: FCUUF), merging with a somewhat patchy collection of uranium assets, being Denison Mines ( NYSE: DNN), raised a lot of eyebrows in the mining community, including yours truly.
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