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Alpha’s acquisition by Fission agreed: PLS LOI announced

by Greg Klein | September 3, 2013

The Patterson Lake South partners have come to terms. Joint September 3 news releases from Alpha Minerals TSXV:AMW and Fission Uranium TSXV:FCU announced a letter of intent to combine the 50/50 joint venture under Fission’s control. The acquisition would cost 5.725 Fission shares for each Alpha share while each company would spin out its non-PLS assets into a new entity. Alpha gets no place on Fission’s management team but would nominate two directors to Fission’s five-person board.

Alpha gets no place on Fission’s management team but would nominate two directors to Fission’s five-person board.

The deal improves on Fission’s previous offer of 5.3 shares announced August 26 and represents a 14.5% premium to the shares’ August 23 close and 11% to their August 30 close.

Shareholders of each company will get shares in their respective spincos, which will hold all non-cash and non-PLS assets. Each spinco will get $3 million in start-up cash.

Alpha’s other projects include three Athabasca Basin uranium projects and two gold properties in Ontario and British Columbia. Fission holds interests in six other Basin properties and one in Peru.

Pending all shareholder and regulatory approvals, the companies hope to consummate by November.

Alpha shares opened September 3 at $7.46, 55 cents above their previous close, rose to $7.60 and fell to $6.95 before closing on $7.05.

Fission opened September 3 at $1.38, four cents above its previous close, rose a penny, dropped to $1.23, then closed at $1.25.

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