Mr. Ross McElroy reports
FISSION URANIUM CORP. ANNOUNCES $30 MILLION BOUGHT DEAL PUBLIC OFFERING OF UNITS
Fission Uranium Corp. has entered into an agreement with Eight Capital and Sprott Capital Partners LP, as co-lead underwriters, on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to buy, on a bought deal basis, 50 million units of the company at a price of 60 cents per unit for gross proceeds of $30-million.
Each unit will comprise one common share of the company and one-half of one common share purchase warrant of the company. Each warrant will entitle the holder thereof to acquire one share at an exercise price of 85 cents at any time on or before the date that is 36 months after the closing date (as defined herein).
The company has granted to the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the units to cover overallotments, if any, and for market stabilization purposes.
The company intends to use the net proceeds of the offering to finance the further development of the Triple R deposit in Saskatchewan, to repay certain amounts owing under the credit facility among the company, Sprott Resources Lending Corp. and Sprott Private Resource Lending II (Collector) LP, and for working capital and general corporate purposes.
The units will be offered pursuant to a base shelf prospectus dated Dec. 7, 2020, and a prospectus supplement to be filed in all provinces of Canada, except Quebec. The units may also be offered in the United States on a private placement basis, pursuant to applicable exemptions from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws, and in other offshore jurisdictions, provided that no prospectus filing or comparable obligation arises.
The closing of the offering is scheduled to be on or about May 11, 2021, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.
About Fission Uranium Corp.
Fission Uranium is a Canadian-based resource company specializing in the strategic exploration and development of the Patterson Lake South uranium property -- host to the class-leading Triple R uranium deposit -- and is headquartered in Kelowna, B.C.
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