![]() “In the next while, we’ll see where the stock should be because the deal is gone,” Randhawa said. “This won’t be the first deal that doesn’t happen that might make sense,” he said in an interview.įission shares rallied seven per cent on Tuesday to close at 74 cents. They each have cash and plenty of work to do on their separate projects.ĭenison CEO David Cates said he was disappointed, but that the company’s long-term strategy hasn’t changed. His son, Adam, proposed the deal and worked hard to put it together.īoth companies stressed they will be fine without this merger. ![]() Lundin said it would create the “go-to name” in the industry once uranium prices recover. “It’s really a credit to the retail shareholders of Fission who made it their business to dig in and understand The deal would have combined two of the best undeveloped uranium assets in Saskatchewan’s Athabasca Basin (Fission’s PLS project and Denison’s Wheeler River project). Fission Uranium Corp VRIC: US, Canadian companies set to soar on Russian uranium ban Fission Uranium updates PLS progress, arranges 50M ATM program Fission. “We are, of course, pleased with the result,” said Jim Gifford, a retail shareholder who created the “FCU Oversight” group to mobilize support against the merger. It was a very unusual move on his part, and it ultimately wasn’t successful. The operating cost was estimated at US14.02 a pound, meaning it would be profitable at current low uranium prices (US38.50 a pound). It envisioned a US1.1-billion mine that would produce an average of 7.2 million ounces of uranium a year over a 14-year mine life. Last week, he travelled to Toronto to addressįission’s retail investors in person and try to convince them that the merger was in their best interests. Last month, Fission released a preliminary economic assessment (PEA) on PLS. Denison is one of mining kingpin Lukas Lundin’s companies. ![]() They thought the bid did not offer nearly enough value for Fission’s Patterson Lake South (PLS) project, which is one of the best uranium discoveries in Saskatchewan in decades. They got together and voiced their displeasure online. Fission’s President, COO and Chief Geologist, Ross McElroy, has led Fission’s technical team to success with two major uranium discoveries in three years. ![]() But retail investors own roughly 80 per cent of the stock, and many of them were fiercely opposed. Fission is well-funded and has the backing of China’s CGN Mining, which invested over 82M in the company at a substantial premium, in 2016. Toronto-based Denison wanted to buy Kelowna, B.C.-based Fission for $321 million in stock.įission’s institutional shareholders were strongly supportive of the deal. The two junior uranium miners announced Tuesday that more than half of Fission’s shares were voted in favour of the friendly transaction, but the number fell short of the two-thirds majority needed to close the deal. “What I learned is that our shareholders are very passionate people,” Fission chief executive Dev Randhawa said in an interview. and Fission Uranium Corp., a rare case in which the retail crowd got their way over large institutional investors. Retail investors from Canada and around the world have blocked the proposed merger of Denison Mines Corp. Manage Print Subscription / Tax Receipt. ![]()
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