Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 LRGreturns4meon Dec 12, 2015 7:27pm
374 Views
Post# 24380122

Letter to Board (sent via IR)

Letter to Board (sent via IR)Dear Mr. Randhawa and the Board of Directors of Fission Uranium,

My guess is you will win reelection to the Board of Directors. 2015 has been a rough year on the uranium mining and exploration industry and certainly for Fission considering the milestones reached at PLS regarding the Triple R deposit. For the record, I voted all of my shares in all accounts in opposition of the merger with Dennison, yet I supported your positions on the Board of Directors (I did strongly consider a withhold vote). While I do have disagreement with both management and the board on the way things have happened in 2015, I prefer to discuss expectations looking forward. You are on probation until I vote again.

The PEA gives us great hope for high returns on our investment and I for one believe that the PLS project has a great future. The PEA identifies specific risks that include soils and rock geotechnical studies along with the need to step up the effort on outreach and community impact along with needed environmental studies. The budget included with the PEA gives us a $20.0 million budget for the Triple R deposit. Additional funds are needed for regional exploration drilling.

I recognize that on prior projects, you are accustomed to selling off by now. This stage of project development may be a bit unfamiliar, however, in order to maximize shareholder value upon a recovery in uranium pricing, Fission needs to continue to advance the Triple R deposit toward permitting while continuing delineation drilling at 600W and continuing to explore the regional hot prospects.

These focus points will help position Fission to maximize value as the project matures. You have stated that you do not control when someone takes a run at Fission, so quit focusing on it and focus on what you can do best for the company which is raise capital at favorable terms. By my calculations you will need to raise $32 million in 2016 (some of it can’t be flow through) and we need this accomplished at minimal dilution of 7.5%.  This is your primary goal for 2016.

I would like to see a budget and timeline for advancement of the Triple R as recommended in the PEA, specifically the geotechnical, outreach and environmental work. Investments in these areas will do a lot to advance the project and as such, the market value of the company. Come March, we will be needing to raise capital, and you always say “you raise capital when you can, not when you need to”; this is going to be a tight winter/spring to accomplish the SP improvement goals. We will need great results on the new conductor to spike the SP favorably for financing.

I do not mind a change of control clause if it is nominally fair. Since you have received such a high number of options priced favorable for the asset value, this COC clause should be minimal. I am ok with rewarding the team with options that are favorably priced as long as the rewards are reasonable and within peer group averages for favorable performance in exploration. At this stage, you have reaped the benefits of the discovery phase and should be compensated on performance metrics from this point forward.

Since I also own Fission 3.0 shares, I look at total compensation and you should be very transparent when operating publicly traded companies simultaneously. I understand the drilling near the Clearwater boundary, but I do not understand the infusion of capital at the price you paid. Your retail shareholders are not dumb, and get offended when you act as if we are. We rely on what you say as the leader of the company and when you deny your own statements, you lose credibility. Most investors invest in both a company and its leadership, and when the leadership loses credibility with shareholders, the company suffers.

Considering all of the attention brought forward recently, please publish a full operating budget, capital raising strategy and schedule of key activities for the 2016 calendar year. I believe all shareholders will appreciate it. I certainly wish you huge success in 2016 and forward. Regards,LRG

Bullboard Posts