Remote area in Saskatchewan loaded with the high-grade metal
Paladin Energy Ltd.’s $1.14 billion offer to buy Canadian mining firm Fission Uranium Corp. is all about geography.
“The rationale is very compelling,” Paladin chief executive Ian Purdy said in a Monday interview. “We see this as a fantastic asset.”
Fission chief executive Ross McElroy said that while the region holds high concentrations of uranium, few companies have the expertise to find and develop such projects.
“Having worked the majority of my geology career in the Athabasca Basin, I can tell you that it takes a great deal of expertise to properly explore and make discoveries like this one,” he said in an interview.
Paladin’s Purdy said he expects more uranium dealmaking on the horizon. The price of the radioactive metal has more than tripled during the past five years, accelerating after Russia’s invasion of Ukraine sparked a newfound need for alternative sources of the reactor fuel.
“Regardless of where the uranium cycle is or how the industry’s doing, the combination of these two companies just makes fundamental sense,” Purdy said.