The following is an excerpt from Canaccord Genuity’s Morning Coffee report.
Fission Uranium Corp. (
TSX: V.FCU,
Stock Forum) reported the close of the previously announced private placement for gross proceeds of $12.9 million.
Canaccord Genuity mining analyst Joe Mazumdar plans to model the impacts of the financing post the close of the Alpha Minerals transaction.
Mazumdar anticipates that a shareholder vote on the transaction will be held in late November, followed by regulatory approvals, leading to de-listing of Alpha Minerals Inc. (
TSX: V.AMW,
Stock Forum) in the first weeks of December and the spin out of two weeks of December and the spin out of two companies comprising the non PLS assets and $3 million in working capital each.
Mazumdar has reiterated his bullish rating for Fission Uranium. The low technical risk PLS uranium project, in Mazumdar’s opinion, is the “go-to” name in the junior uranium sector that is best levered to a long-term bullish demand scenario led by the Chinese market.
The 2013 summer program is 80% complete with assays pending for the majority of the drilling.
Mazumdar also highlights that the recent easing of restrictions of foreign ownership of uranium producing assets, announced by the Canadian government (October 18), could expand the field of potential suitors for the projects in the Athabasca Basin (Saskatchewan) such as the PLS uranium project operated by FCU.
Other companies in the PLS area include NexGen Energy (
TSX:V.NXE,
Stock Forum) and microcap player Makena Resources (
TSX:V.MKN,
Stock Forum).
Fission shares were unchanged at $1.02 Thursday, leaving a market cap of $154.5 million, based on 151.5 million shares outstanding. The 52-week range is $1.48 and 52 cents.