Fission Uranium Corp. [FCU-TSX; FCUUF-OTCQX; 2FU-FSE] said Monday October 26 that it is raising $15 million from a bought deal offering of 54.5 million units priced at 27.5 cents per unit.
Net proceeds will be used to fund further developing at the company’s Triple R uranium deposit in Saskatchewan and to repay certain amounts owing under a credit facility to Sprott Resources Lending Corp. and Sprott Private Resource Lending 11 (Collector), LP.
Fission shares fell on the news, sinking 15.8% or $0.05 to 26.5 cents on volume of 1.4 million. The shares are currently trading in a 52-week range of 49 cents and $0.095.
In connection with the offering, the company has struck a deal with a syndicate of underwriters that will be co-led by Eight Capital and Sprott Capital Partners. Each unit will consist of one common share and one half of a common share purchase warrant. Each whole warrant is good to buy one common share for 41 cents for 24 months after the date of closing.
The underwriters have been granted an over-allotment option to purchase an additional 15% of the units offered in the financing for a period of 30 days after the closing date, which is expected to be November 17, 2020.
In addition, the company said Hong Kong-based nuclear energy company CGN Mining Co. Ltd. may exercise its right to maintain its pro rata interest in Fission by participating in the offering, or buy purchasing in a private placement, units at the offering price which will increase the gross proceeds to the company.
Fission holds a 100% interest in the advanced high grade, Triple R uranium deposit 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.