Fission Uranium stock up on public offering

Image from Fission Uranium.

Fission Uranium (TSX: FCU) plans to raise gross proceeds of C$6 million via a public offering of flow-through units, the company announced on Friday.

The uranium miner has entered into an agreement with Red Cloud Securities to act as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters.

Under this agreement, the underwriters will purchase for resale 14.63 million units of Fission at a price of C$0.41 per unit on a bought deal basis.

Each unit consists of one Fission common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of C$0.50 for a period of 24 months after the offering closing date.

Fission plans to use the proceeds of the public offering for exploration purposes. The company is currently developing the Patterson Lake South property located in the Athabasca Basin, host to the class-leading Triple R uranium deposit.

Shares of Fission Uranium jumped 5.8% by 1:30 p.m. EST Friday. The company has a market capitalization of C$179.4 million.

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