Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Fission Energy closes $10 mln bought deal private placement financing

Fission Energy (CVE:FIS)(OTCQX:FSSIF) said Thursday it has completed its previously announced private placement financing, for gross proceeds of $10.03 million.

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.