Friday 18th August 2017

Resource Clips


Posts tagged ‘Denison Mines Corp. (DML)’

Newfoundland newly found

June 26th, 2017

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

 

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

Isabel Belger

Isabel: I would like to introduce Jon Armes, the president and CEO of Kapuskasing Gold TSXV:KAP. Jon, good to see you again. Tell us something about your background to start with.

Jon: Hi Isabel, good to see you too. I started in the mineral exploration business back in 1993 as an investor relations consultant. I spent the better part of 10 years working for various companies exploring for gold and precious metals as well as base metals and diamonds.

In the mid-2000s I ended up working in the field alongside a couple of different geologists and spent time managing drill programs, splitting drill core, prospecting and assisting in the staking of claims. I also helped structure some companies—bringing project opportunities and public companies together.

In 2010 I was given the opportunity to run a junior exploration company called Lakeland Resources. That company merged with Alpha Exploration in late 2015 and became ALX Uranium [TSXV:AL]. I remained as president until October of 2016 after concluding a transaction with Denison [TSX:DML] on behalf of ALX.

I was appointed president of Kapuskasing Gold in February of 2016. We carried out some drilling last summer on a gold project in Timmins, Ontario, but unfortunately did not intersect anything of significance in that campaign. Since that time I have been looking for the right opportunity or opportunities to bring in to the Kapuskasing property portfolio. The Newfoundland property package seemed like the right fit, and since then we have done some consolidating to the original acquisitions announced on March 1, 2017, and then more recently added the Daniel’s Harbour zinc property to the property portfolio. The copper-cobalt projects are the Lady Pond property and the King’s Court property. The lack of systematic testing for cobalt gave rise to these properties being so interesting because, the few times cobalt was tested for, there were several anomalous values. I particularly like the short- and longer-term outlook for both copper and zinc, and these copper-cobalt projects also provide a polymetallic exposure that includes cobalt, gold and silver.

Isabel: Congratulations on your recent zinc property acquisition in Newfoundland, the Daniel’s Harbour property. What intrigued you about this project?

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

With breathtaking geography and bountiful geology, the Rock
and neighbouring Labrador hold potential for Kapuskasing.

Jon: The opportunity to acquire a project that was a past-producer is always an interesting one. There is an old saying in the mining business that the best place to look for a mine or a deposit is in the “shadow of a headframe.” The Mississippi Valley-type nature of these zinc deposits is also intriguing because of the difficulty in finding them. Typically they are found in an outcrop as was the case for the majority of the lenses that were mined out between 1975 and 1990. I am of the belief that there is an opportunity to find more of these lenses within the boundary of the current Daniel’s Harbour zinc property. The fact that Altius [TSX:ALS] has acquired a significant land position within the immediate area of this project only helps to reaffirm my belief. We will do some compilation of the historic work and more recent exploration on the property and incorporate some out-of-the-box thinking on how to employ some geophysics that have either not been used before or perhaps some re-interpretation. Another aspect could be a ground prospecting program that may identify an outcrop or showing on the property that has yet to be found.

Isabel: What are your exploration plans for the coming months?

Jon: Kapuskasing is currently undertaking a small financing to assist in getting things going both on the Daniel’s Harbour property and the Lady Pond copper-cobalt project. As mentioned, the first things for Daniel’s Harbour would be some data compilation and to identify some geophysical techniques to help identify some drill targets.

The Lady Pond copper-cobalt property has a drill-ready target area called the Twin Pond prospect, recently acquired to complete the consolidation of the original Lady Pond property package. We have also staked several claims to cover additional historic showings of copper-cobalt-gold and silver. The Twin Pond prospect has a non-43-101 resource of approximately one million tonnes grading 1% copper, and looks to be open in all directions. [We hope to increase this resource] with a properly designed drill program—ideally in the coming months with the right funding and availability of service companies to carry out the work.

In the immediate area of Lady Pond, there are several past-producing mines and undeveloped prospects that could turn into economic deposits…. Rambler Metals [TSXV:RAB] has several projects and properties in this area, including the Little Deer project contiguous to our Lady Pond property. There is potential with the right combination of funding and exploration success for Kapuskasing to find more than one of these deposits within the Lady Pond property, having had a good start with the Twin Pond prospect.

Isabel: How much of Kapuskasing is held by the management?

Jon: Currently insiders and parties close to the company own approximately 20% of the issued and outstanding shares. Typically the insiders participate in the financings, as will be the case in this one. We are currently looking to raise up to $750,000 in a combination of flow-through and common shares. We hope to close a first tranche financing in the coming weeks to begin deploying exploration capital.

Isabel: What is your favourite commodity besides the ones in your company?

Kapuskasing will be in a great position to take advantage of not just one but several commodity price spikes, the first of which I think will be in both copper and zinc. —Jon Armes

Jon: I do like both copper and zinc, as evidenced by the recent acquisitions. The battery technology metals are also interesting—with cobalt and lithium leading the latest charge. People forget that electricity needs copper. Wires transport the electricity from batteries and generators to the tool or outlet. I consider copper to be the most important metal for the energy metal sector. We have cobalt as a possible byproduct of the two main polymetallic projects in the Lady Pond and King’s Court projects, along with gold, silver and zinc. Kapuskasing will be in a great position to take advantage of not just one but several commodity price spikes, the first of which I think will be in both copper and zinc.

Isabel: What do you like most about your job?

Jon: I like the multifaceted aspects of running a junior exploration program; there never seems to be a dull moment. I get to meet a lot of different people in the mining and finance industry, the prospectors that generate the project ideas, and the service people that ultimately carry out the exploration of the projects with our team of geologists and technicians. The most exciting times are when we are actually carrying out a drill program. It is drilling that ultimately leads to discovery.

Isabel: That is right. Good talking to you Jon, and good luck with the drill program.

Jon: Thank you.

 

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

Jon Armes
president/CEO of
Kapuskasing Gold

Bio

Jonathan Armes, also known as Jon, has been the CEO and president of Kapuskasing Gold since February 9, 2016, and a director since October 8, 2014. Jon Armes has been a consultant of ALX Uranium since October 2016. Jon Armes served as the president/CEO of ALX Uranium (formerly, Lakeland Resources) from August 12, 2010, until October 2016. He has provided corporate development and investor relations services to mining exploration companies for over 15 years including Band-Ore Resources (which became part of Lake Shore Gold, which in turn joined Tahoe Resources TSX:THO) and Trelawney Mining and Exploration, an IAMGOLD TSX:IMG takeover. He graduated from the University of Guelph in 1993 with a Bachelor of Applied Science degree.

Fun facts

My hobbies: Fishing, hockey and music
Sources of news I use: News apps on my phone
My favourite airport: Vancouver
My favourite commodities: Copper, gold, zinc, cobalt
My favourite tradeshow: PDAC
With this person I would like to have dinner: Warren Buffet (talking about philanthropy, investing and life)
If I could have a superpower, it would be: Seeing into the future


Read more about Kapuskasing Gold.

Rio continues 100% option on Pistol Bay Mining’s Athabasca Basin uranium project

January 24th, 2017

by Greg Klein | January 24, 2017

Having resumed drilling, a Rio Tinto NYSE:RIO subsidiary advances towards a 100% interest in Pistol Bay Mining’s (TSXV:PST) C4, C5 and C6 uranium properties in Saskatchewan’s Athabasca Basin. Rio Tinto Exploration Canada has so far earned 75% of the properties and stated its intention to exercise the full option. That would bring Pistol Bay $5 million by the end of 2019 and a 5% net profits interest.

Rio continues 100% option on Pistol Bay Mining’s Athabasca Basin uranium project

Located in a prolific area, C4, C5 and C6 adjoin Wheeler River, a JV of Denison Mines TSX:DML, Cameco Corp TSX:CCO and JCU (Canada) Exploration that hosts two exceptionally high-grade deposits. The Phoenix zone holds an indicated resource of 70.2 million pounds averaging 19.13% U3O8, the world’s highest-grade undeveloped uranium deposit.

Wheeler’s Gryphon zone shows an inferred 43 million pounds averaging 2.3%. C4, C5 and C6 are located about halfway between Cameco’s majority-held McArthur River, the world’s largest high-grade uranium mine, and Key Lake, the world’s largest uranium mill.

Rio plans four to six holes totalling about 2,600 metres on C5 beginning this month. Past work at C5 has included 12 holes totalling 6,104 metres, along with gravity and DC resistivity surveys.

Five kilometres of rough roads link the three properties to the all-weather route connecting McArthur River with Key Lake.

Last week Pistol Bay updated plans for its properties in Ontario’s Confederation Lake greenstone belt, where the company holds the area’s largest property package. Pistol Bay plans to bring modern geophysics and a region-wide approach to a district where previous companies have explored individual properties at different times.

Late last month the company closed a private placement first tranche totalling $201,850.

Read more about Pistol Bay Mining.

Denison Mines VP of exploration Dale Verran discusses the Hook-Carter project, held 80%/20% with ALX Uranium

November 9th, 2016

…Read more

An expert view

October 27th, 2016

ALX Uranium’s new CEO Mark Lackey discusses the commodity and the company

by Greg Klein

Thirty-six years in key positions give Mark Lackey a well-rounded perspective on the uranium sector. Added to that is an investor’s outlook gained by experience in the brokerage industry. A prolific media commentator—with over 300 TV appearances—he’s frequently asked to discuss commodities, often focusing on uranium trends and uranium companies. Lackey spoke with ResourceClips.com on October 26, the day he joined ALX Uranium TSXV:AL as president/CEO/director.

Industry expert Mark Lackey takes the helm at ALX Uranium

Mark Lackey brings extensive
expertise to ALX Uranium.

Lackey has served as Bank of Canada economist responsible for U.S. economic forecasting and senior commodities manager at the Bank of Montreal. Stints with Gulf Canada, a uranium producer like many other oil companies of the time, and Ontario Hydro, a major uranium consumer, enhanced his supply/demand insight.

That uranium career includes his 16 years in the brokerage industry, serving with Brawley Cathers, Blackmont Capital, Hampton Securities and Pope & Company. More recently he’s been executive VP at CHF Investor Relations and technical adviser at Presmont Group.

To those who watch uranium, its underachieving price hasn’t just been an ongoing disappointment. It’s a source of frustration to those who’ve made bullish forecasts. Lackey has been less surprised than others, however.

“I spoke at a conference last year and might have been the only one who thought uranium was actually going to go down this year,” he recalls. “It did go down, but way more than I thought, which was about $29 or $28. I thought everybody else was too optimistic about Japan restarting all the units and we’ve seen excess supply coming out of places like Kazakhstan. So the weakness this year didn’t surprise me.”

History gives him a sense of perspective, not to mention optimism. “I’ve seen this from $8 in the late ’90s to $136 in 2007. It fell during the 2008 recession, then came back nicely to $72 in 2011, the day Fukushima was hit. So we’ve had some big moves both ways over the years but now we’re down to a price that’s not sustainable. How many new mines would you get at these prices? I can’t think of too many unless you find something huge in the Basin, because high-volume, low-grade projects in many other places have people looking for $50 to $60—not $21.”

ALX Uranium’s new CEO Mark Lackey discusses the commodity and the company

He sees a number of price catalysts over the next few years: increased buying from utilities, a possible reduction in Kazakhstan supply, Japanese restarts and nuclear expansion elsewhere.

Kazakhstan provided 39% of world supply last year (compared with Canada’s 22%). But Lackey wonders whether low prices will force the global leader to cut output. Kazakhstan has been disregarding a 2011 self-imposed production cap of 20,000 tonnes per year, the World Nuclear Association states. WNA data attributes last year’s output to 23,800 tonnes.

As for Japan, it “will have to do something ultimately,” Lackey maintains. “There are 51 of the 54 reactors idled, that’s six or seven billion dollars a plant, roughly three or four hundred billion dollars of infrastructure. Thirty of the units have been tested positively. There are political concerns and the closer you are to Fukushima the more difficult it would be to restart them, but southern Japan doesn’t seem to have the same anti-nuclear view. Japan’s burning a lot of coal, they’re burning LNG and I hear from my sources that there are brownouts and blackouts. You can’t have that in an industrial country.”

Japan’s restarts would have a symbolic effect. But it is, after all, just one country. “There are about 60 plants under construction around the world right now, and more and more of them are coming into play,” Lackey points out.

“It’s cleaner than most baseload sources and relatively cheap. The planet has 1.2 billion people with no power and another two billion with just intermittent power.”

As someone who’s been watching uranium companies for 36 years, I’ve seen it’s the team you have, the projects you have and the jurisdiction you’re in.—Mark Lackey,
president/CEO of ALX Uranium

Although near-term price scenarios can certainly influence investors, there are other priorities in assessing junior explorers. “As someone who’s been watching uranium companies for 36 years, I’ve seen it’s the team you have, the projects you have and the jurisdiction you’re in. My favourite jurisdiction’s been the Athabasca Basin. It’s got the highest grades and Saskatchewan’s a great province to work in.

“I follow the companies in this space and I can see that ALX has a very strong board, management and technical staff,” he adds. “I’m extremely bullish about uranium and extremely excited about working with such an impressive team. It’s a great opportunity and I’m glad to be part of it.”

Lackey replaces Jon Armes, who steps down to pursue other opportunities but stays on as a consultant. During his six years of leadership at ALX and its predecessor Lakeland Resources, Armes helped build one of the Athabasca Basin’s largest and most prospective uranium exploration portfolios. Most recently he negotiated the Hook-Carter transaction that benefits ALX with the budget and experience of Denison Mines TSX:DML.

Industry expert Mark Lackey takes the helm at ALX Uranium

October 26th, 2016

This story has been expanded and moved here.

ALX Uranium welcomes Denison Mines to southwestern Athabasca Basin’s “elephant country”

October 13th, 2016

by Greg Klein | October 13, 2016

ALX Uranium TSXV:AL gets 7.5 million shares of Denison Mines TSX:DML, retains a 20% stake in the Hook-Carter project and has its portion of $12 million in spending covered as Denison moves into the southwestern Athabasca Basin. Under a deal announced October 13, Denison becomes project operator, bringing its expertise to the 16,805-hectare property in the Patterson Lake South region.

ALX Uranium welcomes Denison Mines to southwestern Athabasca Basin’s elephant country

“This is elephant country—a large property that has seen very little drilling on a geological trend with a precedent for large and high-grade uranium deposits,” commented Denison VP of exploration Dale Verran.

“The Hook-Carter property is uniquely situated on the Patterson Lake corridor, offering potential for both basement-hosted deposits, similar to Triple R and Arrow, and unconformity-hosted deposits which remain the largest and highest grade in the Athabasca Basin, namely McArthur River and Cigar Lake which are both operating mines. With Athabasca sandstone thicknesses similar to the Wheeler River project, the property plays to our team’s strengths and we are very excited to get started with exploration in 2017.”

So far Hook-Carter has undergone just eight historic holes, five of them on the property’s 15 kilometres of the Patterson Lake conductive corridor, which hosts Fission Uranium’s (TSX:FCU) Patterson Lake South, NexGen Energy’s (TSX:NXE) Rook 1 and Hook Lake, a joint venture of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada. Hook-Carter also features additional potential along significant sections of the Derkson and Carter corridors.

Subject to approvals, Denison’s work requirement calls for $3 million over the first three years. Should the company fail to meet the commitment, ALX’s stake in the property increases from 20% to 25%. Additionally, Denison funds ALX’s portion of the first $12 million in spending. The companies plan a JV three years after closing the agreement.

“Denison has made a number of world class uranium discoveries within the Athabasca Basin and, given their experience, we believe that they will advance the project diligently and methodically,” said ALX president/CEO Jon Armes. “Knowing that Hook-Carter will see considerable exploration efforts over the next 36 months, the company will focus on exploration at its other high-quality exploration projects in and around the shallow margins of the Athabasca Basin, which include Gorilla Lake, Newnham Lake, Gibbon’s Creek and Lazy Edward Bay.”

Battle in the Basin

July 15th, 2016

Backed by big money, Fission and NexGen compete for uranium prominence

by Greg Klein

NexGen Energy’s July 15 move to the TSX big board (TSX:NXE) marks another milestone of the almost phenomenal progress in and around Saskatchewan’s southwestern Athabasca Basin. In March the company’s Rook 1 project came from behind to surpass the deposit size of Fission Uranium’s (TSX:FCU) more advanced Patterson Lake South. Now both companies focus on regional exploration as well as resource expansion, leaving observers wondering just how much more uranium the region has to offer.

NexGen has seven rigs onsite for its largest season ever, at least 35,000 metres. Eight summer targets include the Arrow resource, due for stepouts as well as delineation, a massive pitchblende-bearing area 180 metres southwest, the Cannon discovery to the northeast and five other conductive areas running southwest to northeast across the property.

Backed by big money, Fission and NexGen compete for uranium prominence

NexGen has an H2 resource update scheduled for Rook 1’s Arrow zone.

Fission’s summer calls for 52 holes and 15,200 metres, most of it outside the Triple R resource. The company hopes to fill in some of the gaps between the deposit and other zones along a trend now 2.58 kilometres long. Sixteen holes will test regional exploration targets.

Fission also plans further EM work and, with pre-feas in mind, a seismic survey, geotechnical borehole testing, hydrogeology wells and Phase II metallurgical studies.

Last spring’s resource estimate for NexGen’s Arrow zone used a 0.25% cutoff on four parallel shear structures to report an inferred total of 3.48 million tonnes averaging 2.63% for 201.9 million pounds U3O8. With the deposit open in most directions, the company hopes to release an expanded, upgraded resource this year.

Fission’s September 2015 estimate for the two-zone Triple R deposit used a 0.2% open pit cutoff and 0.25% underground cutoff for a resource totalling:

  • indicated: 2.01 million tonnes averaging 1.83% for 81.11 million pounds U3O8

  • inferred: 785,000 tonnes averaging 1.57% for 27.16 million pounds

The deposit remains open in multiple directions, Fission states. Triple R reached PEA last September.

Fission has the shallower deposit, about 55 to 200 metres below surface. NexGen’s resource extends to about 800 metres but it’s land-based while most of Fission’s resource and its other zones lie under a lake. Both deposits are basement-hosted, avoiding the leaking sandstone problems that plagued Cigar Lake.

Fission’s summer budget comes to $13.3 million, slightly less than NexGen’s $14 million. Fission’s well-funded following last January’s $82.2-million private placement that gave Hong Kong-based uranium trader CGN Mining a nearly 20% stake in the company. NexGen took a different approach, issuing US$60 million in convertible debentures to CEF Holdings, shared 50/50 by CK Hutchinson Holdings and CIBC. That leaves NexGen with about $100 million on hand and the possibility of paying off the debt.

Does that suggest the company contemplates production revenue in its future? CEO Leigh Curyer can give that impression. The former CFO of a Uranium One predecessor takes credit for managing South Australia’s Honeymoon project through feasibility. Late last month he announced three new staffers holding “combined experience with permitting, development and operating mines.”

By contrast Fission chairperson/CEO Dev Randhawa has openly courted suitors, as in the failed merger with Denison Mines TSX:DML that preceded the CGN deal. The question of who ends up owning how much uranium in the region inspires wide-ranging speculation. Meanwhile expansion and development of the two projects can only enhance their attractiveness.

The region’s northeasterly reach of mineralization hardly stops at Rook 1’s border, as Purepoint Uranium TSXV:PTU demonstrates at Hook Lake. Last winter’s drilling reaffirmed interest in the project’s Spitfire zone, a few kilometres beyond NexGen’s Bow discovery. The season’s last hole revealed Spitfire’s best assay yet—10.3% U3O8 over 10 metres, starting at 237.6 metres in downhole depth and including 53.5% over 1.3 metres.

Backed by money from JV partners Cameco Corp TSX:CCO and AREVA Resources Canada (39.5% each), operator Purepoint has another round of drilling in the planning stages.

Wheeler River PEA buoyant even with cautious uranium price forecast

April 4th, 2016

by Greg Klein | April 4, 2016

Two high-grade eastern Athabasca Basin uranium deposits could form a single mining operation lasting 16 years, according to the Wheeler River joint venture’s PEA. Operator Denison Mines TSX:DML released the figures April 4 from a study that incorporates the McClean Lake mill and bases its numbers on a conservative price forecast.

Wheeler River PEA buoyant even with cautious uranium price forecast

McClean Lake expansion should provide
excess capacity of six million pounds a year.

Using an 8% discount rate, the pre-tax NPV comes to $513 million with a 20.4% IRR. Each of the three partners would face a different tax scenario, Denison pointed out. The company holds a 60% stake in the JV with Cameco Corp TSX:CCO (30%) and JCU (Canada) Exploration (10%).

Initial capex would come to $560 million and sustaining capex another $543 million. Payback was reckoned at about three years.

Those numbers assume a uranium price of $44 per pound U3O8, the current long-term contract price according to Denison. (In lieu of a spot price, UEX Consulting provided a very low March 28 price indicator of $29.15.)

By comparison, Fission Uranium’s (TSX:FCU) September PEA for Patterson Lake South considered a price of $65 per pound. Cameco’s average realized price for 2015 came to $57.58, partly bolstered by the weak Canadian dollar.

But should uranium reach $62.60, Wheeler River’s PEA projects a pre-tax NPV of $1.42 billion and a 34.1% IRR.

The “conventionally mined” basement-hosted Gryphon deposit would enter production first. The unconformity-hosted Phoenix, located below water-saturated sandstone, would require Cigar Lake techniques of ground-freezing and remote-control jet-boring. The two Wheeler River deposits lie three kilometres apart on the 11,720-hectare property.

The Phoenix resource used a 0.8% cutoff to show:

  • indicated: 166,400 tonnes averaging 19.14% for 70.2 million pounds U3O8
  • inferred: 8,600 tonnes averaging 5.8% for 1.1 million pounds

Gryphon’s resource used a 0.2% cutoff:

  • inferred: 834,000 tonnes averaging 2.31% for 43 million pounds

Cutoff grades were based on an assumed price of $50 per pound. The Phoenix indicated category has the world’s highest grade of any undeveloped uranium deposit, Denison states. High-grade Gryphon assays from last winter’s drilling have yet to be incorporated into the resource.

The study sees Gryphon production beginning in 2025, turning out around 40.7 million pounds over seven years. Phoenix would follow with 64 million pounds over nine years. Milling would take place at McClean Lake, expected to have excess capacity of six million pounds a year when expansion finishes by the end of 2016. Denison holds a 22.5% share of the mill, along with AREVA Resources Canada (70%) and OURD Canada (7.5%).

“Thanks to the existing infrastructure in the eastern Athabasca Basin, our ownership interest in the McClean Lake mill, and a project designed to minimize risk and upfront capex, the Wheeler River project has the potential to emerge as one of the next producing assets in the region,” stated Denison president/CEO David Cates.

Last week the company announced an all-share deal in which GoviEx Uranium CSE:GXU would acquire all of Denison’s African assets. Expected to close next month, the transaction would leave Denison with 25% of GoviEx outstanding shares and 28% on a fully diluted basis.

Chinese uranium trader signs LOI for $82-million strategic investment with Fission

December 21st, 2015

by Greg Klein | December 21, 2015

While campaigning on behalf of the doomed merger with Denison Mines TSX:DML last July, Fission Uranium TSX:FCU chairperson/CEO Dev Randhawa defended the proposal by saying, “One of the things I run into when I go to Asia is they say I’m too small.” But on December 21 the company announced a letter of intent for an $82.22-million private placement from a Hong Kong-listed uranium trader, CGN Mining Company Ltd. Its controlling shareholder is China Uranium Development Company Ltd, a subsidiary of the energy utility China General Nuclear Power Corp. The deal would leave CGN with 19.99% of Fission.

Chinese uranium trader signs LOI for $82-million strategic investment with Fission

The $82-million deal would give a Chinese
company nearly 20% of the Triple R deposit.

Randhawa called it “the first time a Chinese company has invested directly in a Canadian uranium company.” The parties also pledged to work towards an offtake agreement.

They hope to close by January 29. Among the requirements are approvals from the TSX, CGN shareholders, the Hong Kong exchange and the Chinese government. Should either party back out or CGN fail to win approvals by February 29, a $3-million break fee takes effect.

CGN would nominate two directors to Fission’s board, which would grow from seven to nine members.

Last June the Canadian government approved Australia-headquartered Paladin Energy’s (TSX:PDN) ownership of the proposed Michelin mine in Labrador, relaxing a 1987 policy that requires at least 51% Canadian ownership of uranium mines. The policy doesn’t apply to exploration and development projects.

Fission’s Patterson Lake South project, just outside Saskatchewan’s Athabasca Basin, reached PEA in September with numbers that the company said makes its Triple R deposit potentially one of the world’s lowest-cost uranium producers. Last week the company fended off dissident shareholders to elect its management slate to the board.

Fission’s next-door neighbour hasn’t done badly in financing either. Last month NexGen Energy TSXV:NXE announced a $20-million bought deal, which followed a $23.74-million private placement that closed in May. The Arrow zone of the company’s Rook 1 project has its maiden resource scheduled for H1 2016.

Update 2: Fission Uranium fights off dissidents as management’s slate elected

December 15th, 2015

by Greg Klein | December 15, 2015

Fission Uranium TSX:FCU bosses won their latest skirmish with dissatisfied investors as incumbent directors and the management’s one new nominee were elected to the board. Voters representing 51.16% of eligible shares, constituting “record shareholder turnout,” sided with the status quo, Fission announced December 15. The company reported percentages for the seven directors that ranged from a low of 80.37% for chairperson/CEO Dev Randhawa to 89.13% for Ross McElroy, Fission’s president, COO and head geologist.

The company reported a total of 197,855,736 shares voted at the meeting, but the board election drew about 167.7 million votes, media rep David Matthews informed ResourceClips.com.

Fission fights off dissidents as management’s slate elected

Dev Randhawa argues for the Denison merger at an October meeting. The proposal got majority support but fewer than the two-thirds
vote required from Fission shareholders.

“Notwithstanding a withhold campaign launched by a small group of dissident shareholders to withhold votes from the entire board, we have received overwhelming and conclusive support from our shareholders that says we are on the right track and have the plan needed to ensure that PLS and its Triple R deposit reach its full potential,” Randhawa maintained. “We hope that once and for all this puts an end to their costly and distractive campaign against the company.”

Initially triggered by opposition to Fission’s proposed merger with Denison Mines TSX:DML, a group called FCU Oversight presented its own candidates in November. The group withdrew its slate early this month, saying it wasn’t until after leader Jim Gifford submitted his list, “as required by Fission’s last-minute adoption of an advanced notice policy,” that the company revealed change-of-control payouts could put shareholders “on the hook for millions of dollars.” Executive pay was one of the dissidents’ concerns. The group then advised shareholders to vote withhold “to force the current directors to resign.”

Fission’s slate drew support from Rick Rule of Sprott U.S. Holdings, as well as proxy advisory firms Institutional Shareholder Services and Glass, Lewis & Co.

New to the board, which numbered six prior to the election, is Raffi Babikian, whose career “encompasses just about every aspect of the uranium business including M&A activity for AREVA,” according to an earlier statement from Randhawa.

In a brief response to the election, FCU Oversight said Fission “now has the latitude and licence to conduct the business of the company as they [see] fit. We hope that they will act in the long-term interests of all Fission shareholders.”