Fission Uranium Paladin Merger Gets Security Review Notice From Canada
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Fission Uranium FCUUF has received a notice from the Minister of Innovation, Science and Industry ordering a national security review of its pending merger with Paladin Energy Limited.
The notice was sent per section 25.3 of the Investment Canada Act (ICA). Consideration of the FCUUF-Paladin merger under the ICA has been extended and remains ongoing. Fission Uranium is considering the Minister's notice, exploring available options and evaluating the prospects of obtaining ICA clearance for the merger.
Progress on the Fission Uranium & Paladin Merger
On Sept. 26, Fission Uranium completed the hearing before the Supreme Court of British Columbia regarding the approval of the final order for its acquisition by Paladin Energy . The decision is currently awaited.
Fission Uranium’s shareholders voted in favor of the acquisition at the special meeting held on Sept. 9, 2024.
Fission Uranium’s acquisition by Paladin Energy remains opposed by CGN Mining Company Limited (“CGN“), which holds an 11.26% stake in the company. CGN is a subsidiary of China General Nuclear Power Corp.
The closure of the acquisition remains subject to receipt of the final order from the Supreme Court and clearance under the ICA as well as other customary conditions.
FCUUF-Paladin Energy Merger to Create Clean Energy Leader
Fission Uranium inked the deal with the Australian miner Paladin Energy in June 2024. Per the agreement, Paladin Energy would acquire FCUUF’s outstanding shares for an implied total equity value of C$1.14 billion ($0.846 billion).
Paladin Energy is an independent uranium producer with 75% ownership of the world-class long-life Langer Heinrich Mine located in Namibia. It also owns a portfolio of uranium exploration and development assets in Canada and Australia. Through its Langer Heinrich Mine, it delivers uranium to major nuclear utilities across the world. It has a 17-year estimated mine life and a nameplate annual capacity of 6 million pounds of uranium.
The acquisition of Fission Uranium will make Paladin Energy the 100% owner of the Patterson Lake South uranium property. It is a proposed high-grade uranium mine and mill in Canada’s Athabasca Basin region. The feasibility study for the property projects a 10-year mine life with an annual production of 9.1 million pounds of uranium.
The acquisition, if successful, will create a company with a pro forma market capitalization of $3.5 billion. It will be placed among the largest pure-play global uranium companies with a combined mineral resource of 544 million pounds of uranium and ore reserves of 157 million. It will have a solid portfolio of exploration, development and production assets and a substantially increased international capital markets exposure.
This move will help the combined company to capitalize on the growing demand for uranium, which is surging due to factors like increasing electricity needs, decarbonization efforts and data center expansion.
