Itinerant • 50 Comments
The Critical Investor • 36 Comments
Dec. 21, 2015, 4:39 PM
- Fission Uranium (OTCQX:FCUUF) signs a letter of intent with China's CGN Mining to acquire a 19.9% stake in Fission for $82.2M, representing China’s first direct investment into a Canadian uranium firm.
- The two groups also plan to enter an offtake agreement in which CGN would buy uranium output from Fission’s Patterson Lake South property in Saskatchewan.
- CGN is controlled by China General Nuclear Power Corp., one of China’s two giant nuclear power firms; China has 21 nuclear reactors under construction and 43 more that are planned, far more than any other country.
Oct. 28, 2015, 4:59 PM
- A dispute between Fission Uranium (OTCQX:FCUUF) and a retail shareholder group has escalated to the point where the shareholders are working on a plan to launch a proxy fight and kick out the company’s board, Financial Post reports.
- The dispute that was brewing for months went public this week as Fission’s board adopted a bylaw that forces the group to give the company 30 days notice if it wants to name new directors at the Dec. 15 annual meeting.
- The group believes the decision to pursue a merger with Denison Mines (NYSEMKT:DNN) is evidence the board is not acting in the best interests of the company and that shareholder value is at risk.
Oct. 13, 2015, 8:58 AM
- Denison Mines (NYSEMKT:DNN) and Fission Uranium (OTCQX:FCUUF) say they have terminated their C$483M merger agreement after the deal failed to receive the necessary approval of two-thirds of Fission's shareholders.
- At the deadline for submission of proxies on Friday, DNN's shareholders had strongly supported the deal.
- DNN had sought to acquire Fission to expand its presence in the Athabasca mining region in Saskatchewan.
Jul. 6, 2015, 5:25 PM
- Denison Mining (NYSEMKT:DNN) agrees to acquire Fission Uranium (OTCQX:FCUUF) for ~C$483M ($382M) to expand its presence in the Athabasca mining region in Saskatchewan.
- DNN says the deal that implies a price per Fission common share of C$1.25, representing a ~18% premium to the 30-day volume weighted average price of Fission's shares.
- Fission's 100%-owned Patterson Lake South Project and DNN's 60%-owned Wheeler River Project, both located in the Athabasca Basin, will headline the asset portfolio of the combined company.
- Dev Randhawa, Fission’s chairman and CEO, will be CEO of the combined company.
Jun. 22, 2015, 12:59 PM
- Canada's government says it has approved an application for Australia’s Paladin Energy (OTCPK:PALAF +4%) to construct its proposed Michelin uranium mine in the provinces of Newfoundland and Labrador, making a rare exception to its policy that requires uranium mines to be majority owned by Canadian companies.
- Analysts say the approval may open the door to other foreign investors seeking majority ownership of Canadian uranium mines, and could encourage investment by two Chinese utilities that have said in recent months they are looking at Canada for acquisitions.
- Canadian companies that own non-producing uranium assets in the country include Cameco (CCJ +0.9%), Fission Uranium (OTCQX:FCUUF +2.1%) and Denison Mines (DNN -1.1%).
May 26, 2015, 12:49 PM
- China's government is said to be on the hunt for uranium acquisitions with large deposits and low costs, and Cantor Fitzgerald analyst Rob Chang says four projects in Canada could meet its criteria.
- Chang's deposits with the potential to attract immediate Chinese interest are Rio Tinto's (NYSE:RIO) Roughrider, Cameco's (NYSE:CCJ) Millennium, Fission Uranium's (OTCQX:FCUUF) Patterson Lake South and UEX's (OTCPK:UEXCF) Shea Creek; Denison Mines' (NYSEMKT:DNN) Wheeler River project could get attention for the long term.
- China National Nuclear Power Corp. is expected to raise as much as $2.16B in what is set to be China’s largest domestic IPO in five years.
Jan. 12, 2015, 7:14 PM
- Fission Uranium's (OTCQX:FCUUF) "truly phenomenal" resource estimate for its PLS deposit has rekindled takeover speculation about the company, and CEO Dev Randhawa says investment bankers already have set up a data room for potential bidders.
- Fission said late Friday the deposit contains an estimated 105.5M lbs. of uranium resources, with more than half of the resource comprised of a high-grade zone that could potentially be mined at very low costs; the discovery is smaller than Saskatchewan's McArthur River and Cigar Lake mines, analysts say it compares favorably to everything else in the province.
- Fission needs the help of a major company for actual development into a mine; Cameco (NYSE:CCJ), Rio Tinto (NYSE:RIO) and France Areva are sometimes mentioned, but since the discovery is shallow and could be mined as an open pit, the CEO thinks it may draw interest from more general buyers such as Teck Resources (NYSE:TCK) that have no history in the region.
Feb. 24, 2014, 11:42 AM
- Uranium takeovers are on the verge of a comeback that could put companies such as Denison Mines (DNN +5.2%), Ur-Energy (URG +4.9%) and Fission Uranium (FCUUF) in play, according to a Bloomberg report.
- Uranium prices are forecast to rise more than 40% by year's end as Japanese power plants restart nuclear reactors that have been shut down since the March 2011 Fukushima disaster, and analysts say the rebound in uranium demand may fuel takeovers as buyers try to get ahead of rising prices.
- DNN would make an attractive target for someone looking to gain access to Canada’s Athabasca Basin, home to the world’s richest high-grade uranium; a Raymond James analyst thinks Rio Tinto may be particularly interested.
- Cantor Fitgerald thinks DNN and Fission could be targets of Cameco (CCJ +0.8%), which has been building up cash and last month sold a stake in a power plant for C$450M.
- Also: URRE +5.5%, URZ +4.6%, UEC +0.9%, USU +0.4%.
- ETFs: NLR, NUCL.
Dec. 10, 2013, 10:49 AM
- Fission Uranium (FCUUF) completed its acquisition of Alpha Minerals, giving it full ownership of the Patterson Lake South discovery in Saskatchewan's Athabasca Basin, which Raymond James considers the last known "high-grade, easily open-pittable uranium asset left un-mined in the world," and which should operate with extremely low cash costs with plenty of exploration upside.
- Such attributes make it a top takeover target for the Basin's existing major producers, miners considering a Basin foothold, or even Asian nuclear utilities, the firm says: "Assuming exploration momentum continues, we would be surprised if a bid did not materialize in the next two years."
Sep. 3, 2013, 5:32 PM
- Fission Uranium (FCUUF.OB) agrees to acquire Alpha Minerals (ESOFF.PK) for $185M in stock, attempting to create a potential takeover target that could appeal to a larger producer such as Cameco (CCJ) or Areva (ARVCF.PK).
- The junior miners have been releasing impressive drilling results from their Patterson Lake South project in Saskatchewan's Athabasca Basin.
Jan. 16, 2013, 2:49 PM
Among the Fission Energy assets being acquired by Denison (DNN +3.4%) is a 60% stake in the Waterbury Lake uranium project, part of a deposit attached to Rio Tinto’s (RIO -1.9%) Roughrider deposit - which Cantor Fitzgerald says "ties a neat bow on top of Denison for a potential takeout offer" from RIO. The analyst also considers Cameco (CCJ -1.2%) a potential source of a competing offer for Fission.| Jan. 16, 2013, 2:49 PM
Jan. 16, 2013, 8:38 AM
Denison Mines (DNN) will acquire a portfolio of uranium exploration projects from Fission Energy (FSSIF.PK), including Fission's 60% interest in the Waterbury Lake uranium project, as well as exploration interests in the eastern part of the Athabasca Basin, plus assets in Namibia, Quebec and Nunavut.| Jan. 16, 2013, 8:38 AM