#Fission uranium corp merger plus

In general most uranium sector analysts expect uranium prices to rise sharply and higher than US$70/lb. While not directly affecting prices yet, the recovery from Fukushima will have psychological effects, contributing to a uranium ‘rebound’. The Japanese nuclear energy sector has been steadily resuming operations since the Fukushima disaster in 2011 as reactors are gradually brought back online and needing fuel. Uranium has been mined in the Athabasca Basin for more than 60 years, which has allowed geologists and engineers to gather plenty of data about the geological formation of uranium enrichment and the area’s unique formations, allowing for the use of much more sophisticated exploration methods than in lesser known areas.Īccording to the industry giant Cameco (NYSE:CCJ), the outlook for the uranium sector is positive. While most uranium mines produce at grades of 0.15% or less, Athabasca can deliver grades of about 15%. Athabasca is home to such large and uranium rich properties as McArthur River and Cigar Lake. Some analysts suggest that when uranium demand gets under way – and it will, given the number of uranium reactors that are being planned for construction until 2020 - the Athabasca properties will be among the ones to benefit first and most. Denison has a strong, diversified portfolio and, with the Triple R deposit, Fission is bringing the Athabasca Basin's largest undeveloped high-grade resource as well as a successful and award-winning technical and management team,' said Randhawa.ĭenison Energy’s most important assets will be two uranium exploration and development projects: the Patterson Lake South Project Fission and Denison Mines’ 60% owned Wheeler River project.īoth are located in the Athabasca Basin, which has seen the start of an actual uranium exploration ‘boom’ because its deposits are among the most desirable in the world.

'This merger will create the uranium industry's leading exploration and development company at a time when the sector is poised for growth. Fission’s chairman and CEO Dev Randhawa will take over the CEO position in the merged company. Denison Energy would then be equally owned by the Denison- and Fission shareholders. The combined company will be named Denison Energy, boasting a market capitalization of approximately C$900 million. This implies a price of 1.25 CAD per Fission-share, a premium of 18% to the average price of the past 30 days.

#Fission uranium corp merger plus

If approved, Fission’s shareholders will receive 1.26 common shares of Denison for each common share of Fission held plus $0.0001 per share in cash. We are confident that our shareholders will benefit from the value creation opportunities that will be realized through an expanded and more diversified uranium company,' said Denison’s executive chairman, Ron Hochstein, Executive Chairman of Denison. 'The continued exploration success at our Phoenix deposit and Gryphon discovery, in combination with the discovery and exploration success of the world class Triple R deposit puts the combined company in an incredibly strong strategic position, with the most significant development portfolio in the world. (TSE:FCU) (OTCQX:FCUUF) intends to take over its competitor Fission Uranium for approximately C$483 million to create a diversified uranium company with a promising project portfolio in northern Saskatchewan. Fission completed a similar deal earlier this year when it sold a chunk of assets to Denison Mines Corp.Canada’s Denison Mines ( TSE:DML) (NYSE MKT:DNN) and Fission Uranium Corp.

The merged company will only hold the PLS deposit, as Fission and Alpha plan to spin out all their other projects into new companies. He noted that Fission paid a very healthy premium for Alpha compared to other recent uranium transactions. “I do think there will be some consolidation,” said Robert Gill, portfolio manager at Aston Hill Institutional Partners. That could convince senior companies to take a closer look at M&A opportunities, experts said. However, there is hope within the industry that the market is set for a turnaround, as a long-running Russian supply deal is coming to an end and Japan is slowly working to re-start idled nuclear reactors.

The spot price is floundering at a multi-year low of about US$34 a pound as the industry struggles to recover from the Fukushima disaster in 2011. Of course, this is not an easy time to sell a uranium company. or Areva SA, which have the financial and technical resources required to bring the PLS deposit into production.

He made it clear that the ultimate plan is to sell the combined company to a major producer like Cameco Corp. “When uranium prices are so beat up, mining companies are going to go to the projects that are easiest to mine first.” “That’s why this discovery is so important,” he said. This advertisement has not loaded yet, but your article continues below.