Fission 3.0 raises $8 million for uranium drilling, shares up
Fission 3.0 Corp. [FUU-TSXV] said Wednesday it has raised $8 million from a non brokered private placement financing and will use the proceeds to fund drilling of 20 holes on its Patterson Lake North property in Saskatchewan.
Under the terms of the offering, the company sold 19.04 million charitable flow-through common shares, priced at 42 cents each. The amount raised includes the full exercise of the investment dealers’ over-allotment option. The offering was originally announced as a bought deal private placement on December 5, 2022, but was upsized due to strong investor interest, the company said in a press release.
Fission 3.0 Corp shares advanced on the news, rising 5.6% or $0.015 to 28 cents on volume of $1.04 million. The shares are currently trading in a 52-week range of 33.5 cents and $0.065.
Fission 3.0 is focused on finding the next high-grade deposit in Saskatchewan’s Athabasca Basin, the world’s richest uranium region, an area that in 2020 accounted for approximately 8.1% of the global primary uranium production.
Headed by CEO Dev Randhawa, the award-winning Fission 3.0 technical team already has a number of high-profile Athabasca uranium discoveries under its belt
Fission 3.0 has 16 properties in its portfolio. The company aims to find unconformity-related deposits, the most common of the 14 major categories of uranium deposit types. Notable examples include Key Lake, Cluff Lake, Rabbit Lake, McClean Lake, McArthur River and Cigar Lake deposits – with some of the ore around 20% uranium.
An unconformity is a buried erosional or non-depositional surface, separating two rock masses or strata of different ages, indicating that sediment deposition was not continuous. Basement-hosted deposits are spatially associated with and closely related to, unconformity uranium-occurrences.
This year, the company said it expected to spend $12.8 million in Saskatchewan and will still have $5 million in the treasury when that work is done.
Fission 3.0 said it will drill 20 holes at Patterson Lake North (PLN), one of the most advanced and highest ranked projects in Fission 3.0’s portfolio by virtue of its location and the fact that it has multiple untested and prospective targets for high grade uranium.
Previous drilling by Fission 3.0 at the more than 3.0-kilometre-long A1 conductor intersected basement hosted uranium mineralization supported by the presence of alteration, pathfinder elements and structural disturbance reinforcing the large-scale potential of the project, the company has said.
Exploration at PLN this year will include drilling at the A1 Conductor.
Meanwhile, the company has said it is seeing positive signs that it is on the right track at other projects in the portfolio.
In March, 2022, the company said drilling in the previously untested Broach Lake area of the PLN property encountered encouraging anomalous radioactivity associated with a brecciated fault zone in basement rock in hole PLN22-031