Fission Uranium Corp. [FCU-TSX; FCUUF-OTCQX; 2FU-FSE] said Monday December 21 that it has closed a bought deal offering that raised $7 million from the sale of 17.07 million flow-through units, priced at 41 cents each.
Each flow-through unit consisted of one common share to be issued as “flow-through shares” and one-half of one common share purchase warrant. Each whole warrant entitles the holder to buy one common share of the company for 50 cents at any time before 5:00 p.m. December 21, 2022.
News of the flow-through offering comes after Fission recently raised $17 million from an offering of 62 million units priced at 27.5 cents each, money that the company said would be used to pay down debt and fund further developing at the company’s Triple R uranium deposit in Saskatchewan.
In a November, 19, 2020 news update, the company said it will immediately commence the review process in order to select a lead Engineering group to head up and commence the feasibility study at Triple R uranium deposit.
On Monday, Fission shares were unchanged at 39.5 cents on volume of 906,227. The shares are currently trading in a 52-week range of 49 cents and $0.095.
Fission holds a 100% interest in the advanced high-grade, Triple R uranium deposit located on the south-western edge of Saskatchewan’s Athabasca Basin, on Fission’s Patterson Lake South property.
In September, 2019, the company released the results of a pre-feasibility study (PFS) for an underground-only mining scenario at Patterson Lake South.
The company said the underground PFS follows the results of an earlier PFS report, which outlined a hybrid mine approach using both open pit and underground techniques.
Highlights from the earlier PFS report, which was released in April, 2019, envisaged average production of 15 million pounds of U3O8 annually during the first five years of production from mineral reserves of 90.5 million pounds of U3O8.
That scenario was based on initial CAPEX of $1.5 billion and operating expenditure of US$6.77 per pound. It envisaged a 4-year construction period and 8.2-year mine life.
The underground PFS highlighted a substantial reduction in Capex and time requirements for construction of the Triple R mine due to simplified water control measures for underground mining.