- Fission Uranium (TSX:FCU) reveals its arrangement with Paladin Energy(ASX:PDN) has been extended until Dec. 30, 2024, by the Minister of Innovation, Science and Industry.
- The company continues to engage with authorities, but there is no guarantee the necessary ICA clearance will be obtained in a timely manner.
- The arrangement was first revealed in Julh 2024 and sees Fission Uranium being potentially acquired by Paladin Energy
- Shares of Fission Uranium are up 6.25 per cent to C$0.85 as of 11:13 a.m. ET
Fission Uranium Corp. (TSX: FCU) reveals that its arrangement with Paladin Energy(ASX:PDN) has been extended until Dec. 30, 2024, by the Minister of Innovation, Science and Industry.
In a press release, the company said that the arrangement, which was first disclosed in July 2024, also sees Fission Uranium being acquired by Paladin Energy. As part of the national security review process, Fission continues to engage with the Minister and relevant authorities under the ICA.
While the company remains in discussions, Fission notes that there is no certainty the national security review will be completed in a timely manner, or that the required ICA clearance will be obtained at all. If the necessary clearance is not granted, the proposed arrangement cannot proceed.
The acquisition of Fission Uranium by Paladin was first announced in June, when Paladin entered into an agreement to acquire Fission for C$1.1 billion. According to the agreement, Fission shareholders will receive 0.1076 shares of Paladin for every Fission share for an implied valuation of $1.30 per Fission share.
After the closing of the transaction, Fission shareholders will own 24 per cent of Paladin.
“The acquisition of Fission, along with the successful restart of our Langer Heinrich Mine, is another step in our strategy to diversify and grow into a global uranium leader across the top uranium mining jurisdictions of Canada, Namibia and Australia,” Ian Purdy, CEO of Paladin Energy, said at the time.
Fission Uranium is a Canadian uranium exploration and development company focused on its flagship Patterson Lake South (PLS) project in the Athabasca Basin of northern Saskatchewan, Canada. The PLS property is considered one of the most significant high-grade uranium discoveries in the region.
Shares of Fission Uranium are up 6.25 per cent to C$0.85 as of 11:13 a.m. ET
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