Fission raising $55 million to advance PLS uranium project in Athabasca Basin

The PLS exploration camp in the southwest of the Athabasca Basin. Credit: Fission Uranium

Fission Uranium (TSX: FCU) has entered an agreement with Canaccord Genuity and SCP Resource Finance to raise C$75 million ($55m) through the sale of approximately 65.6 million common shares of Fission priced at C$1.18 per share.

The underwriters also have an option to purchase up to an additional 15% of the number of shares sold under the offer for a period of 30 days after the offer closes on or about Feb. 12, 2024.

Fission will use the funds to advance the exploration and development of its PLS uranium project on the southwest rim of the Athabasca Basin in Saskatchewan.

A feasibility study produced for the project was filed in March 2023 outlining a construction period of three years at a cost of C$1.16 billion to develop a mine with a 10-year life. During that time, 90.9 million lb. of uranium oxide (U3O8) will be produced.

The PLS has robust post-tax economics, including an internal rate of return of 27.2%, a net present value at an 8% discount of C$1.20 billion, and a payback period of 2.6 years.

The shallow, high-grade Triple R deposit is the basis of mine plan, beginning with the R780E and R840W zones. There is future opportunity to upgrade resources at the R1515W and R1620E zones, but they are not included in the current plan.

The indicated resource contains 114.9 million lb. U3O8 in 2.7 million tonnes of material that grades 1.94% U3O8. Within that resource is a probable reserve of 3.0 million tonnes grading 1.41% U3O8. A cut-off grade of 0.25% U3O8 was used. Material in the inferred category of reserves was not considered in planning the mine.

Production is targeted by 2029.