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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
Comment by teeveeon Nov 04, 2015 12:07pm
121 Views
Post# 24258161

RE:RE:RE:can we get a recount on the merger vote

RE:RE:RE:can we get a recount on the merger vote
PamplonaTrader wrote:
PamplonaTrader wrote:
Raising $50mm at $0.30 would dilute current shareholders by more than 40%!!!

OUCH!
 


To put this into context, if you thought Triple R was a $1Bln takeout, you're going to need it to sell for almost $2Bln to realize your price target with dilution.  

And if it doesnt sell in 2016?  2017? etc?  Even more dilution!

I see way too many newbie comments on here to the effect of "This is a world class deposit!  The pounds are still there!  Eventually the market will turn!" blah, blah, blah.

Again, equity cost of capital and the concept of dilution is, weirdly, a concept that the average retail investors simply does not grasp. A pitty!


Dilution doesn't matter to Dev. Why? First, he maintains exposure to 10% of any deal dollar value through options which increase as the share capitalization increases with ongoing dilution. Second, what is important is raising the equity capital to continue paying the G & A, followed by some exploration to keep the story alive. Doubling the share capitalization to double the pounds, would result in a flat share price, but along with continued high salary and travel expenses, double Dev's value as his options position would double. Like the old Sultan's of Swing song "Money for nothing and chicks for free"........ 

Bullboard Posts