Fission Uranium (TSX: FCU; US-OTC: FCUUF) has announced a $30 million bought deal public offering, the proceeds of which will be used to advance development of the Triple R deposit in Saskatchewan.
The company is issuing 50 million units, each of which is priced at $0.60. Each unit will be comprised of one common share and one-half of a share purchase warrant. Each full warrant will entitle the holder to buy an additional share at t price of $0.85 within 36 months of the offering closure.
The syndicate is underwritten by Eight Capital and Sprott Capital Partners. The underwriters have been granted over-allotment up to an additional 15% of the units for 30 days after closing.
The Triple R deposit is located on the Patterson Lake South property in the Athabasca Basin. The prefeasibility study envisions project with a pre-production capital outlay of $1.18 billion and a total capital cost of $1.46 billion.. It would have a post-tax net present value with an 8% discount of $702 million, and a post-tax internal rate of return of 25%. The post-tax payback period would be 2.5 years.
The resources are estimated to be 2.2 million indicated tonnes at an average grade of 2.10% uranium oxide, and 1.2 million inferred tonnes at 1.22% U3O8. Over the seven-year life of the mine, Fission will recover approximately 78.7 million lb. U3O8.
The Patterson Lake South property also has tremendous exploration potential. The company says only 25% of the area has been tested.