In my opinion the acquisition comes down to this - for $5.8 million in stock, we will significantly expand our presence in the Athabasca Basin, formally establish JV relationships with key companies including Rio Tinto and acquire $1.5 million in cash and. In addition, we will acquire 8.2M lbs of Inferred U3O8 in the Hornby Bay region along with the granite-hosted Dome property in Namibia.
Fission is one of the leading juniors in the Athabasca Basin. Our flagship property Waterbury Lake is located there, immediately adjacent to the RoughRider claim that Rio Tinto beat off Cameco to acquire. So is our PLS claim – a very strong property which we recently extended. In other words, we already have a solid presence in the region and this agreement will make it stronger still.
This matters because the Athabasca Basin in the world’s leading source of uranium, accounting for nearly 20% of world supply last year. Any and all serious uranium producers need to be there, and recent announcements from China regarding Canadian mining companies (see my earlier post) make it plain that the Athabasca is the place to be. This is why we’ve been so aggressive with our exploration and why this agreement matters.
In conclusion: my opinion is that a greater presence in the world’s top uranium district, JV ties with leading uranium players such as Rio, additional strong and promising properties and increased cash dramatically increases our profile in the Basin and our potential as a uranium junior.
You can read the press release about the agreement here. As always, if you have questions don’t hesitate to get in contact with us.
