Why I Like This Deal:
1. We are increasing Fission shareholder value in a volatile market
2. This is a chance for Fission shareholders to be part of a great company (Denison)
3. It’s a win for Denison (and therefore for Fission shareholders) because:
One - the addition of the aforementioned Fission assets gives Denison an incredible portfolio in the Athabasca Basin – the world’s leading source of high-grade uranium.
Two - Fission’s Waterbury lake is the proven extension of Rio Tinto’s Roughrider deposit (acquired during the takeover of uranium explorer Hathor) and not only would Rio appreciate extending this ore-body but Rio will also require a mill and Denison owns 25% of the McLean Lake mill.
Three - Kepco (the Korean Energy Company, in addition to holding 14.92% of Denison, also owns the other 40% of the Waterbury JV with FIS.
Two - Fission’s Waterbury lake is the proven extension of Rio Tinto’s Roughrider deposit (acquired during the takeover of uranium explorer Hathor) and not only would Rio appreciate extending this ore-body but Rio will also require a mill and Denison owns 25% of the McLean Lake mill.
Three - Kepco (the Korean Energy Company, in addition to holding 14.92% of Denison, also owns the other 40% of the Waterbury JV with FIS.
What the Media is NOT saying:
The media has focused on the Denison shares that Fission shareholders will receive but they don't realize the incredible value that NewCo will have and that, in my opinion, is one of the most compelling parts of the deal:
1. NewCo will have $18m in cash and Denison will repay Fission any money spent on Waterbury between now and the closing of the deal
2. NewCo will have 50% of PLS (one of the most exciting new discoveries to occur in the Basin)
3. NewCo will have three other properties in Western Athabasca
4. NewCo will have one of most experienced and successful management and geo teams in the uranium exploration business.
