Fission Uranium Corp. [FCU-TSX; FCUUF-OTCQX; 2FU-FSE] signed an agreement with Eight Capital and Sprott Capital Partners LP, as co-lead underwriters, on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to buy, on a bought deal basis, 50 million units of the company at a price of 60 cents per unit for gross proceeds of $30-million.
Each Unit will be comprised of one common share of the company, and on-half of one common share purchase warrant of the company. Each warrant is good to buy one share at an exercise price of $0.85 for 36 months after the closing date.
Fission granted the underwriters an option, exercisable at the offering price for 30 days following the closing of the offering, to purchase up to an additional 15% of the units to cover over-allotments, if any, and for market stabilization purposes.
The company intends to use the net proceeds of the offering to fund the further development of the Triple R deposit in Saskatchewan, to repay certain amounts owing under the credit facility among the company, Sprott Resources Lending Corp. and Sprott Private Resource Lending II (Collector), LP, and for working capital and general corporate purposes.
The closing date of the offering is scheduled to be around May 11, 2021, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.
Fission Uranium is a Canadian based resource company specializing in the strategic exploration and development of the Patterson Lake South uranium proper, host to the class-leading Triple R uranium deposit and is headquartered in Kelowna, British Columbia.