A surge in the nuclear fuel triggers return to acquisitions in the previously sleepy sector
Shares of Fission rose as much as 15 per cent in Toronto Monday, the biggest intraday increase for the Canadian company’s stock since September 2022.
While Uranium prices have rallied as supply concerns escalate and countries turn back to nuclear power as a way to cut carbon emissions, few companies offer exposure to the fuel. Paladin, which is restarting its own uranium mine in Namibia, will add Fission’s Canadian project to its suite of projects.
Paladin chief executive Ian Purdy said the deal would help position the company as a “global uranium leader” across Canada, Namibia and Australia.
Paladin’s flagship project is the Langer Heinrich mine in Namibia, which only recently returned to commercial production following a six-year period of care and maintenance. Fission’s portfolio includes the shallow high-grade PLS project in Canada’s Athabasca Basin near Paladin’s Michelin project.
The all-share proposal equates to an implied $1.30 per Fission share, according to a statement from Paladin. Fission’s board of directors recommended the deal, which represents about a 26 per cent premium to the last closing price.
Paladin is offering 0.1076 fully paid share for each Fission share, according to the statement. The deal is expected to be completed in the September quarter of this year, and Fission shareholders will own 24 per cent of the combined company, which will have a market capitalization of US$3.5 billion.
With assistance from Jacob Lorinc.