Firms launch physical uranium buying for small investors using blockchain
The physical uranium will be stored in facilities owned by Cameco.
Click to watch Fission Uranium CEO Dev Rhandawa on BNN earlier today
It has been quite a year for Fission Uranium CEO Dev Rhandahwa.
A year ago his stock wasn’t performing and he was getting beat up on the internet.
Then, in classic mineral exploration fashion, Rhandawa’s fate changed. Lukas Lundin’s Denison Mines paid approx. $70m for Fission’s Eastern Athabasca Basin assets, leaving the spinout company to keep the projects on the western side, including a 50% interest in the Patterson Lake South property. PLS has yielded the most significant Canadian mineral discovery of 2012/2013.
Now Rhandahwa’s got one of the stocks of the year, and the smile on television to prove it.
Fission Uranium (TSXV:FCU)’s powerful performance
Rhandhawa wants to consolidate ownership of the PLS Deposit by taking over 50% partner Alpha Minerals in exchange for Fission shares which value Alpha at roughly $7.26 per share (Fission News Release).
Fission has a valid argument for consolidating the deposit. The combined entity will reduce overhead costs, focus the market, and make for a cleaner takeover candidate.
“Sooner or later the two would have to become one,” said Rhandawa on BNN television earlier.
Rhandawa claims that Alpha’s investors approached Fission, but Rhandawa’s a promoter and I suspect he’s just making noise. Alpha’s shareholders are extremely loyal to CEO Ben Ainsworth and Chairman Mike Gunning, both giants in Canada’s uranium exploration industry.
Ben’s son Garrett Ainsworth, VP of Exploration at Alpha Minerals, is credited with making thediscovery at PLS, only a few months after his father had to lend the company money to keep it afloat.
Father and son were rewarded with a 35x+ increase in their share price and I hope they receive the PDAC’s Prospector of the Year award for their perseverance.
Rhandawa would be wise to keep the Alpha men around.
In fact I have a proposed management structure for the combined Fission Uranium and Alpha Minerals:
It’s the best of both worlds.
Watch Fission Uranium CEO Dev Rhandawa on BNN earlier.
Disclaimer: I own AMW. Do your own due diligence.
2 Comments
Ron Davies
Gunning would do a great job as CEO so you get no argument from me. However I think you underestimate Randhawa. I’ve met him a few times and while he is indeed a promoter he’s also an experienced deal-maker. The Denison deal you mention wasn’t a quirk of fate it was engineered by Randhawa and it delivered real value at a time when every uranium stock was getting hammered. He’s also got a hell of a lot more skin in the game than the Alpha crew. Once these companies merge we need an experienced deal-maker at the helm. Gunning could do it but so could Randhawa.
My real problem with your line up is suggesting Garret is of the same caliber as McElroy. Who cares if he’s a great guy? He’s no match for McElroy who has 30 years under his belt and has played a big role in a bunch of Athabasca discoveries. Put him on the exploration team sure but not on a level with McElroy. Oh and please don’t credit Garret with making the discovery because that’s an insult to the entire technical team (of both companies) that put in a lot of work to get there and also Fission was the operator when the discovery hole was drilled.
k murrey
Gunning took credit for that Hathor deal when a lot of the heavy lifting had already been done before he got there. As for the rest of the article – Humpreys is obviously being paid by Alpha or some other sort of stooge. An article on the proposed management is a great topic – let’s let someone who actually knows what they are talking about be the one to write it.