Fission Uranium (OTC:FCUUF) is in the process of raising 75 million Canadian dollars to fund exploration and development activities at its Patterson Lake South (PLS) uranium project in Saskatchewan, Canada.
The funding initiative involves the sale of approximately 65.6 million common shares at CA$1.18 each, with Canaccord Genuity (OTCPK: CCORF) and SCP Resource Finance leading the deal.
The anticipated completion date for the financing is Feb. 12, pending regulatory approvals. Additionally, the underwriters retain the option to purchase up to an additional 15% of the shares sold under the offer within 30 days after the offer closes.
The PLS project, situated on the southwest rim of the Athabasca Basin, is within a region recognized for significant uranium production. Per the Fraser Institute's report, Saskatchewan is the third-most attractive mining jurisdiction globally and supplies about 20% of the world's uranium.
The company's major mines include McArthur River and Rabbit Lake, operated by Cameco (NYSE:CCJ), and the recently revived Denison Mines' (AMEX:DNN) McClean Lake.
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Based on a feasibility study conducted in March 2023, the PLS project demonstrates robust post-tax economics, boasting a 27.2% internal rate of return, a CA$1.2 billion net present value at an 8% discount, and a 2.6-year payback period.
The mine plan prioritizes the shallow, high-grade Triple R deposit, specifically targeting the R780E and R840W zones. The study envisions the production of 90.9 million pounds of uranium oxide (U3O8) over a ten-year mine life, with a total estimated cost of CA$1.1 billion and a three-year construction period, slated to commence in 2029.
Fission Uranium is also conducting a 6,000-meter regional exploration drill program at PLS. The goal is to assess multiple targets along the Patterson Lake Conductive corridor hosting the Triple R deposit. This strategic move to secure additional funding aligns with Fission's commitment to unlocking the full potential of the PLS uranium project.
According to Business Insider's data, spot uranium has surged 17.9% year-to-date. Fission's shares experienced a 10% decline in Monday's trading, closing at CA$1.17.
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