It has been quite a year for Fission Uranium TSXV:FCU CEO Dev Randhawa.
A year ago his stock wasn’t performing and he was getting beat up on the Internet.
Then, in classic mineral exploration fashion, Randhawa’s fate changed. Lukas Lundin’s Denison Mines TSX:DML paid approximately $70 million for Fission’s eastern Athabasca Basin assets, leaving the spinout company to keep the projects on the western side, including a 50% interest in the Patterson Lake South property. PLS has yielded the most significant Canadian mineral discovery of 2012/2013.
Now Randhawa’s got one of the stocks of the year.
Fission has a valid argument for consolidation. The combined entity would reduce overhead costs, focus the market and make for a cleaner takeover candidate.
“Sooner or later the two would have to become one,” said Randhawa on BNN.
Randhawa claims that Alpha’s investors approached Fission. But Randhawa’s a promoter and I suspect he’s just making noise. Alpha’s shareholders are extremely loyal to CEO Ben Ainsworth and chairman Mike Gunning, both giants in Canada’s uranium exploration industry.
Father and son were rewarded with a 35x+ increase in their share price and I hope they receive PDAC’s Prospector of the Year award for their perseverance.
Randhawa would be wise to keep the Alpha men around.
- Let’s have Gunning as CEO. Gunning sold Hathor Exploration and both bankers and bureaucrats respect him. He is young enough and is a juggernaut in Saskatchewan’s uranium industry.
- Ben Ainsworth can be chairman.
- Garrett can join Fission president Ross McElroy on the exploration team. (Garrett can figure out the dynamics; he’s a great guy.)
- Randhawa can be the IR. (Call him “president” if he insists.)
It’s the best of both worlds.
Disclaimer: Tommy Humphreys owns stock in Alpha Minerals.
Reprinted by permission of Mining.com