The recent reactor restarts have been too slow as utilities face safety and regulation hurdles. Furthermore, there seems to be a lack of price momentum in uranium prices as an oversupply remains as a result of the 2011 Fukushima disaster that shut down all of Japan's nuclear reactors.
Its most obvious suitor, Cameco ( CCJ), is facing a tax battle with the Canadian revenue agency as it face up to over $800 million in taxes. The move to merge with Denison Mines seemed to be a desperation play as Fission's high-grade monster uranium resource and positive PEA results have so far failed to generate an attractive bid from a big player. The broader sell off in the commodities sector due to a slowing global economy and cheap oil prices added pressure onto Fission's stock.
If this deal goes through, this would potentially escalate Fission's acquisition timing.Īt about mid-2015, Fission's attempt to merge with Denison Mines ( DNN) have led to many unhappy shareholders and a fall in its stock price from about CAD$1.15 to a 52-week low of CAD$0.54. CGN and Fission are also looking to enter an off-take agreement in which CGN would have the capacity to buy uranium output from Fission's Patterson Lake South property. This investment would provide it with a 19.9% stake in the company. On December 21st, Fission announced a CAD$82M investment at $0.85 from China's CGN Mining. CGN Mining's investment in Fission Uranium ( OTCQX:FCUUF) makes Fission an interesting and attractive play.
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