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Fission Uranium approaches Alpha with takeover, may go hostile

26th August 2013

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Canada-based uranium exploration company Fission Uranium on Monday announced it had approached joint venture (JV) partner Alpha Minerals with a takeover offer to consolidate the Patterson Lake South (PLS) project, in the Athabasca basin of Saskatchewan.

Fission had offered 5.3 of its own shares for each Alpha share, representing a price of $7.26 per Alpha share. It also proposed that Alpha appoint two members to its board of directors.

However, the uranium developer said that Alpha had not engaged in “meaningful discussions” when the proposal expired on Saturday, and added that it would consider taking the offer directly to shareholders.

Fission stated that several stakeholders, which included some of the largest shareholders of Fission and Alpha, had independently expressed support for a consolidation of PLS within Fission.

“The current 50:50 ownership is suboptimal from a development and value maximising perspective. Future development of the consolidated PLS will streamline decision-making and allow for execution of the project in an efficient manner,” Fission said in a statement.

Further, the transaction would benefit shareholders, as combining the two companies would create a larger public float of shares, which would lead to increased liquidity for Alpha shareholders in particular.

“The trading volume of Fission has been consistently and significantly greater than the dollar volume of Alpha,” Fission said.

Fission also believed that cost savings could be realised through the consolidation of the two companies.

Besides PLS, Alpha also owns two other uranium projects in the Athabasca basin and two gold assets – one in Ontario and one in British Columbia.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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