Fission notes that CGN Mining may exercise its right to maintain their pro rata interest in the company by participating in the offering, or by purchasing units at the offering price in a private placement, which would increase the gross proceeds to Fission.
Net proceeds of the offering will be used to fund further development of the company’s Triple R deposit in Saskatchewan and to repay debt.
Earlier this year, Fission closed a $10 million senior secured loan facility with Sprott Resource Lending II.
Shares of Fission Uranium sank 19% on the TSX by 2 p.m. Monday. The company has a market capitalization of C$124.5 million.