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The company holds a portfolio including precious, base and strategic metal exploration in North America, Africa, Saudi Arabia and Australia.
Fission Uranium (TSX: FCU) has announced a C$30 million ($24.4m) bought deal public offering, the proceeds of which will be used to advance development of the Triple R deposit in Saskatchewan.
The company is issuing 50 million units, each of which is priced at C$0.60. Each unit will be comprised of one common share and one-half of a share purchase warrant. Each full warrant will entitle the holder to buy an additional share at a price of C$0.85 within 36 months of the offering closure.
The syndicate is underwritten by Eight Capital and Sprott Capital Partners. The underwriters have been granted over-allotment up to an additional 15% of the units for 30 days after closing.
The Triple R deposit is located on the Patterson Lake South property in the Athabasca Basin. The pre-feasibility study envisions a project with a pre-production capital outlay of C$1.18 billion and a total capital cost of C$1.46 billion. It would have a post-tax net present value with an 8% discount of C$702 million, and a post-tax internal rate of return of 25%. The post-tax payback period would be 2.5 years.
The resources are estimated to be 2.2 million indicated tonnes at an average grade of 2.10% uranium oxide, and 1.2 million inferred tonnes at 1.22% U3O8. Over the seven-year life of the mine, Fission will recover approximately 78.7 million lb. U3O8.
The Patterson Lake South property also has tremendous exploration potential, the company says, as only 25% of the area has been tested.
(This article first appeared in the Canadian Mining Journal)
