Fission 3.0 Corp. [FUU-TSXV] is increasing the size of a previously announced private placement financing to $7.5 million from an earlier $5 million target.
It said the private placement will consist of a combination of units priced at 21 cents each, flow-through units priced at 23 cents per unit, and flow-through units to be sold to charitable purchasers at 29 cents per unit.
Each unit will consist of one common share and one common share purchase warrant. Each flow-through unit will consist of one common share to be issued as a flow-through share within the meaning of the Income Tax Act (Canada) and one-half of one warrant.
Each charity flow-through unit will consist of one flow-through share and one warrant. Each whole warrant will entitle the holder to buy one common share for 26 cents at any time on or before that date which is 2 months after December 22, 2021, the expected closing date of the offering.
Fission 3.0 said the agent will have an option for up to 48 hours prior to the closing date to sell up to an additional $1.5 million worth of any combination of flow-through and charity flow-through units at their respective offering prices.
Fission 3.0 is a uranium project generator and exploration company with a focus on Saskatchewan’s Athabasca Basin, home to the world’s largest high-grade uranium discoveries.
The company currently has 16 projects in the Athabasca Basin.
Several of Fission 3.0’s projects are located near large uranium discoveries including the Triple R deposit on Fission Uranium Corp.’sÂ [FCU-TSX; FCUUF-OTCQX; 2FU-FSE] Patterson Lake South (PLS) property, and NexGen Energy Ltd.’s [NXE-TSX, NYSE] Arrow deposit.
Fission 3.0’s large PLN property, consists of 38 claims and covers 39,946 hectares. It is strategically located between Fission Uranium’s PLS property to the south and UEX Corp.’s [UEX-TSX, UEXCF-OTC] Shea Creek deposit to the north. Fission 3.0 has said it was planning a drilling program this winter and next summer. The budget for the program was estimated at $2.5 million to $3.0 million.
The company said private placement proceeds are earmarked for future exploration work on the company’s projects, corporate development, and general corporate and working capital purposes. Gross proceeds from the flow-through shares will be used for Canadian exploration expenses within in the meaning of the Income Tax Act (Canada) with an effective date no later than December 31, 2021.
Fission 3.0 said it has recently completed an $8 million financing and is currently planning a winter exploration and drill program on its PLN project. It is also entertaining joint venture partners with some of its other projects.