The company sold 11.8 million flow-through common shares at 85 cents per share. The placement was conducted on a bought-deal basis, by a syndicate of underwriters led by Dundee Securities.
The proceeds must be used to fund Canadian exploration expenses, as defined by the Income Tax Act of Canada, by December 31, 2012.
A cash commission, as well as broker warrants, were paid out in connection with the financing. Each broker warrant is exercisable into one common share of the company for a period of 24 months from the closing, at a price of 85 cents each.
Fission Energy's joint venture Waterbury Lake property is located adjacent to Hathor Exploration's (TSE:HAT) Roughrider deposit, which is now the subject of a takeover battle between Rio Tinto (NYSE:RIO)(LON:RIO) and Cameco (TSE:CCO)(NYSE:CCJ).
A research note issued in August from Dundee Capital Markets noted that Fission's J-Zone East, J-Zone and Highland zones at Waterbury are seen as a 370 metre extension to the Roughrider deposits, making currently undervalued Fission a potential takeover target for those looking to get in on the action in the uranium-rich Athabasca Basin.
Indeed, Fission shares have increased more than 75 percent following Cameco's initial bid for Hathor in late August.