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Uranium hopeful gains US$10M Sprott facility

Fission Uranium (TSX: FCU) has secured a US$10 million, four-year credit facility from Sprott Resource Lending II towards its Patterson Lake South project and for general working capital.
Uranium hopeful gains US$10M Sprott facility Uranium hopeful gains US$10M Sprott facility Uranium hopeful gains US$10M Sprott facility Uranium hopeful gains US$10M Sprott facility Uranium hopeful gains US$10M Sprott facility

Fission Uranium’s Patterson Lake South project in Canada’s Athabasca Basin

Staff reporter

The market had reacted coolly last year to Fission's prefeasibility study on hybrid development plans for the project's Triple R deposit, prompting it to investigate an underground-only mining option.

The resulting PFS in September reduced construction time by a year, cut capex by 21% to $1.18 billion and outlined a 2.2-year payback for the seven-year mine.

Fission said in February it was "on track to commence" the environmental assessment process.

The company had ended 2019 with about C$4.8 million (US$3.4 million) in cash and equivalents.

Under the terms announced yesterday, Fission said the senior secured facility could be extended by one year and it had agreed to issue 20.7 million warrants to Sprott at an exercise price equivalent to 17c.

China General Nuclear Power holds 19.9% of the company

Shares in Fission shot up 47% yesterday as uranium equities and the spot price strengthened on further supply cutbacks, with major producer Kazatomprom announcing it would curb output by about 17.5% this year, taking global production curtailment to about 53%.

Fission shares have ranged from 10c-59c over the past year and closed up 8c yesterday to 25c, capitalising it at $121.6 million (US$86.6 million).