As those of you following the Fission story will know, on December 21st we announced a binding letter of intent with CGN Mining, pursuant to which they will invest over $82M in Fission Uranium at a share price of $0.85 which was a 23% premium to the market. At a time when most of the resources sector is still struggling, upon closing we will be in a position of strength: first because of a strategic partnership and second Fission will have the financial clout to advance its PLS project. Through CGN Mining’s relationship to its mothership, CGN, we are now connected to what is arguably one of the most important utility giants in the world, responsible for delivering power in a region where nuclear power is growing at rate greater than anywhere else in the world. With the significant financial injection CGN Mining’s investment provides, we can continue to grow and explore PLS for a long time without having to go back to the market again and again with dilutive financings as other explorers are forced to do. Shareholders can be confident that we are, therefore, starting 2016 in a strong position.
As to what we do now: as you know, our winter drill program is imminent. The winter freeze has been a little later this year so drilling is not expected to begin until mid to late January. Looking past the upcoming program, having a strategic partner of the highest calibre means we are able to continue take a longer-term view than other explorers. We can, for example, continue with confidence to build the resource and progress along the permitting path and every permitting stage we reach means the potential for more value to be added to the PLS project.
We can also now begin considering our options regarding the broader exploration possibilities at PLS - those that are near our existing mineralization and also those that are a little further afield. Having recently gone through the planning stage for this winter with our award-winning technical team, I can tell you that there are a lot of top tier exploration targets on this very large property.
We believe it’s a good time to be in this position. We have a long way to go of course but nuclear’s profile is growing and you may have noticed that December saw several uranium stocks, including Fission, begin to climb. In fact at time of writing we are up nearly 53% from early December.
The Fission team is excited about our prospects for this year. Growing shareholder value is first and foremost on the agenda and with industry sentiment beginning to improve, and a premier-class strategic partner on board, we’ve got good reason to be excited. We’ll let you know as soon as the drills are turning at PLS and will share results as soon as they come in.
Ross McElroy, President, COO and Chief Geologist, of Fission Uranium