bluesteele wrote: I note that when Fission's assets excluding the PLS were sold to Denison in what appears to have been all share deal. A similar deal has been proposed with the Triple R deposit today.
This quote was pulled from the article that was posted on this board earlier.
"Fission shareholders will hold approximately 11 per cent in Denison when the deal is completed." Read more at https://www.stockhouse.com/companies/bullboard/t.fcu/fission-uranium-corp#dx8DkkRD0kx10Zmm.99
I'm assuming the percentages were altered a to exclude the PLS in the transaction, but still managements holding in Denison would be substantial
.
So if Dev and the management team already have large holdings in Denison from the previous deal with Lundin and now are seeing their holdings in Denison going down the toilet doesn't it seem perfectly clear why he wants to merge the two companies? This way he can shore up his Dension holdings and at the same time hold off any bids that come in from Cameco, Rio or Areva for the Triple R deposit.
Dev said in the conference call that he cares more about his shares than anything.... paraphrasing now. In my opinion this deal reflects that statement. This is a deal for Dev and his team, it's secures their future with million dollar salaries, bonuses, options, world travel rubbing elbows with the billionaire Lundin's and friends... blah blah blah.
This deal not only sets up management for life but also protects their holdings in Dension by adding a very valuable crown jewel that will also make Denison shares valuable again.
You see Denison's uranium projects are totally obsolete with the discovery of the new high grade uranium district on the western side of the basin at Paterson Lake South. The combination of the Triple R and Arrow deposits basically make Denison's assets worthless, no major will be knocking on Dension's door looking to buy their stake in Wheeler or Phoenix, Gyphron etc. They are only interested in massive deposits, elephants like the Triple R with 150 million pounds of high grade uranium that cash flow for decades! In my opinion FCU is being used to shore up a bloated P*O*S PIG in Dension that was about to continue to drift lower and rot away with dilution year after year in hopes that when the uranium market turns Lundin and the boys would be able to attract a suitor to buy their sh***ty assets at a premium. Unfortunately that strategy has kinda gone in the tank with the arrival of the new uranium district on the western side of the basin so the new "mergeco" strategy has emerged.