Fission raising $75M to advance PLS uranium project in Athabasca Basin

Fission Uranium (TSX: FCU; OTCQX: FCUUF) has entered into an agreement with Canaccord Genuity and SCP Resource Finance to raise $75 million by selling approximately 65.6 million shares of Fission common stock at $1.18 per share.

Athabasca Basin Fission Uranium

Fission Uranium (TSX: FCU; OTCQX: FCUUF) has entered into an agreement with Canaccord Genuity and SCP Resource Finance to raise $75 million by selling approximately 65.6 million shares of Fission common stock at $1.18 per share.The underwriters also have the option to purchase an additional 15% of the number of shares in the offering within 30 days of the offering closing date on or about February 12, 2024.

Fission will use the funds to advance the exploration and development of its PLS uranium project on the southwestern edge of the Athabasca Basin in Saskatchewan.

A feasibility study prepared for the project, due in March 2023, calls for a construction period of three years and a cost of $1.16 billion to achieve a ten-year mine life. During this period, 90.9 million pounds of uranium oxide (U3O8) were produced.

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PLS has strong after-tax economics, including a 27.2% internal rate of return, an NPV of $1.2 billion at an 8% discount, and a 2.6-year payback period.

The shallow, high-grade Triple R deposit forms the basis of the mining program, starting in the R780E and R840W zones. Areas R1515W and R1620E have the potential for future resource improvements, but these are not included in the current plan.

The indicated resource contains 114.9 million pounds of U3O8, including 2.7 million tonnes of material grading 1.94% U3O8. Probable reserves in this resource are 3 million tonnes grading 1.41% U3O8. A cutoff content of 0.25% U3O8 was used. Materials in the Inferred Reserves category are not considered in the mine design.

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