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.
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.
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.