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Fission Uranium Corp T.FCU

Alternate Symbol(s):  FCUUF

Fission Uranium Corp. is a Canada-based uranium company and the owner/developer of the high-grade, near-surface Triple R uranium deposit. The Company is the 100% owner of the Patterson Lake South uranium property. Its Patterson Lake South (PLS) project, which hosts the Triple R deposit, a large, high-grade and near-surface uranium deposit that occurs within a 3.18 kilometers (km) mineralized trend along the Patterson Lake Conductive Corridor. The property comprises over 17 contiguous claims totaling 31,039 hectares and is located geographically in the south-west margin of Saskatchewan’s Athabasca Basin. Additionally, the Company has the West Cluff property comprising three claims totaling approximately 11,148-hectares and the La Rocque property comprising two claims totaling over 959 hectares in the western Athabasca Basin region of northern Saskatchewan. The La Rocque property is prospective for high-grade uranium and is located five km south of Cameco’s La Rocque Uranium Zone.


TSX:FCU - Post by User

Bullboard Posts
Post by teeveeon Jul 14, 2015 10:52am
235 Views
Post# 23921710

Merger a mistake....

Merger a mistake....The facts are:
1. a new uranium mine needs a thresh hold of at least 150 million pounds to justify a stand alone mill.
2. The SW Athabaska Basin should have  its own regional mill, however, this would require collaberation between deposit owners who wish to also be miners.
3. Dev has no intention of becoming a miner and wants to sell. 

The above facts lead to a few questions:
1. Why is Dev in a hurry to merge with DML when he has no interest in becoming a miner, and at the same time will be the CEO of the new merged company? This is at odds with his stated intent,unless he thinks the merged company would be an easier sell? This too doesn't make sense as DML isn't worth much as its projects are not economic and are ongoing liabilities. 
2. Why merge with a company whose "assets" are in fact not economic and therefore have little if any value? 
3. Why tout the benefit of a mill when it is a minority interest and generates only a trivial amount of cash flow, and is too far away for Paterson Lake deposits? 

It seems the best way foward is to continue exploring TripleR and building pounds in the ground, even if a roll back is required to keep the share capitalization managable. The possiblity of a hostile bid is moot as FCU's shareholders have to accept that vulnerability due to control of the company being "on the street". If the merger is really about thwarting a potential hostile bid, why dilute the shareholders by 59% by merging with a broken down old company that is near worthless? Mathmatics alone indicates a hostile bid of $1.50 would be far better than 50% dilution  the merger brings and then facing the prospect of a shrinking market capitalization. 
Bullboard Posts