Up to Friday's close, Denison Mines' shares had declined 9.4 percent since the announcement of the deal, while Fission Uranium's stock had lost nearly a third of its value.ĭenison Mines agreed to buy Fission Uranium in July to create a diversified uranium company in a strong position in the Athabasca Basin in northern Saskatchewan through Fission's Patterson Lake South Project and Denison's Wheeler River Project. Randhawa said he does not expect a revised offer from Denison.įission's shares jumped 5.8 percent, or 4 Canadian cents, to 73 cents in Toronto, while Denison's stock gained 1.5 percent, or 1 Canadian cent, to 68 cents.įission will continue drilling at Patterson Lake, viewed by some as the best undeveloped uranium deposit in the world, and resume its search for a strategic investor, Randhawa said.Īt the deadline for submission of proxies on Friday, Denison's shareholders strongly supported the arrangement.īoth companies have canceled the shareholders' meetings scheduled for Wednesday. FCU-TSX FCUUF-OTCQX 2FU-FSE signed an agreement with Eight Capital and Sprott Capital Partners LP, as co-lead underwriters. They viewed Denison's assets as lower quality than Fission's Patterson Lake South project in northern Saskatchewan, he added. “In the next while, we’ll see where the stock should be because the deal is gone,” Randhawa said.Cantor Fitzgerald analyst Rob Chang said some Fission shareholders did not support the combination because it lacked operational synergies. “This won’t be the first deal that doesn’t happen that might make sense,” he said in an interview.įission shares rallied seven per cent on Tuesday to close at 74 cents. They each have cash and plenty of work to do on their separate projects.ĭenison CEO David Cates said he was disappointed, but that the company’s long-term strategy hasn’t changed. His son, Adam, proposed the deal and worked hard to put it together.īoth companies stressed they will be fine without this merger. Lundin said it would create the “go-to name” in the industry once uranium prices recover. or to deal in with the proposed transaction are estimated uranium thus acquired. Join Mergr and gain access to Fission Uranium’s M&A summary, the M&A summaries of companies just like it, as well as recent M&A activity in the metals/mining sector. Vermont Yankee Nuclear Power Corporation ( ' Ver- It is stated that the. “It’s really a credit to the retail shareholders of Fission who made it their business to dig in and understand The deal would have combined two of the best undeveloped uranium assets in Saskatchewan’s Athabasca Basin (Fission’s PLS project and Denison’s Wheeler River project). The Company’s most targeted sectors include metals/mining (100). “We are, of course, pleased with the result,” said Jim Gifford, a retail shareholder who created the “FCU Oversight” group to mobilize support against the merger. It was a very unusual move on his part, and it ultimately wasn’t successful. Famous Gus Uranium Mines Limited Canso Mining Corporation Limited Fission. engages in the acquisition, exploration, and development of uranium resource properties in Canada. Last week, he travelled to Toronto to addressįission’s retail investors in person and try to convince them that the merger was in their best interests. such security purchased by them for resale or acquired in the execution as. Denison is one of mining kingpin Lukas Lundin’s companies. The Triple R deposit on Fission Uranium Corporations Patterson Lake South (PLS) property is located in Canadas Athabasca Basin, home to the worlds.
They thought the bid did not offer nearly enough value for Fission’s Patterson Lake South (PLS) project, which is one of the best uranium discoveries in Saskatchewan in decades. They got together and voiced their displeasure online. But retail investors own roughly 80 per cent of the stock, and many of them were fiercely opposed. Toronto-based Denison wanted to buy Kelowna, B.C.-based Fission for $321 million in stock.įission’s institutional shareholders were strongly supportive of the deal. The two junior uranium miners announced Tuesday that more than half of Fission’s shares were voted in favour of the friendly transaction, but the number fell short of the two-thirds majority needed to close the deal. “What I learned is that our shareholders are very passionate people,” Fission chief executive Dev Randhawa said in an interview. and Fission Uranium Corp., a rare case in which the retail crowd got their way over large institutional investors. is a Canadian resource exploration company specializing in the strategic acquisition, exploration and development of uranium deposits. It and Denison called off a C483 million merger agreement in October due to opposition from. Retail investors from Canada and around the world have blocked the proposed merger of Denison Mines Corp. China's CGN Mining Company Limited bought a nearly 20 percent stake in Fission Uranium Corp. Manage Print Subscription / Tax Receipt.
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