Fission Uranium raises $11 million, stock plunges

Drilling at Fission Uranium’s Patterson Lake project. Image from Fission Uranium.

Fission Uranium (TSX: FCU) has arranged a bought deal financing of approximately 54.5 million units of the company at a price of C$0.275 per unit for gross proceeds of C$15 million (about $11.3 million).

Each unit consists of one common share of the company and one-half of a common share purchase warrant. Each whole warrant is exercisable at a price of C$0.41 for 24 months following the closing date.

Fission notes that CGN Mining may exercise its right to maintain their pro rata interest in the company by participating in the offering, or by purchasing units at the offering price in a private placement, which would increase the gross proceeds to Fission.

Net proceeds of the offering will be used to fund further development of the company’s Triple R deposit in Saskatchewan and to repay debt.

Earlier this year, Fission closed a $10 million senior secured loan facility with Sprott Resource Lending II.

Shares of Fission Uranium sank 19% on the TSX by 2 p.m. Monday. The company has a market capitalization of C$124.5 million.

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