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Fission Uranium FCUUF announced that Canada’s Minister of Innovation, Science and Industry extended the national security review related to its pending merger with Paladin Energy Limited until Dec. 30, 2024. FCUUF has cautioned that there is no guarantee that the clearance, per the Investment Canada Act (ICA), will be obtained in time and failure to do so could make the deal fall apart.
FCUUF received the original notice from the minister on Oct. 1, 2024. It was sent as per section 25.3 of the ICA. The merger, if it goes through, is expected to create a world-class uranium producer with a diversified presence across leading uranium mining jurisdictions of Canada, Namibia and Australia.
Advancement on Fission Uranium-Paladin Merger
Fission Uranium inked the deal with the Australian miner Paladin in June 2024. FCUUF shareholders voted in favor of the acquisition at the special meeting held on Sept. 9, 2024.
On Sept. 26, Fission Uranium completed the hearing before the supreme court of British Columbia regarding the approval of the final order for its acquisition by Paladin. It was approved by the court on Oct. 8.
Fission Uranium’s acquisition by Paladin, however, remains opposed by CGN Mining Company Limited, which holds an 11.26% stake in FCUUF. CGN is a subsidiary of China General Nuclear Power Corp.
The closure of the acquisition remains subject to the receipt of clearance under the ICA and other customary conditions.
FCUUF-Paladin Merger to Create Leading Uranium Producer
Per the agreement, Paladin would acquire FCUUF’s outstanding shares for an implied total equity value of C$1.14 billion ($0.846 billion).
Paladin is an independent uranium producer with 75% ownership of the world-class long-life Langer Heinrich Mine located in Namibia. It also owns a portfolio of uranium exploration and development assets in Canada and Australia. Through its Langer Heinrich Mine, it delivers uranium to major nuclear utilities across the world. It has a 17-year estimated mine life and a nameplate annual capacity of 6 million pounds of uranium.
The acquisition of Fission Uranium will make Paladin the 100% owner of the Patterson Lake South uranium property. It is a proposed high-grade uranium mine and mill in Canada’s Athabasca Basin region. The feasibility study for the property projects a 10-year mine life with an annual production of 9.1 million pounds of uranium.
Fission Uranium recently staked four new properties in the Athabasca Basin region of northern Saskatchewan — Typhoon, Corsair, Merlin and Seahawk. Per the company, all of these have the potential for hosting high-grade uranium.
The acquisition, if successful, will create a company with a pro-forma market capitalization of $3.5 billion. It will be placed among the largest pure-play global uranium companies with a combined mineral resource of 544 million pounds of uranium and ore reserves of 157 million. It will have a solid portfolio of exploration, development and production assets, and a substantially increased international capital markets exposure.