Under the LoI, Fission will acquire Alpha and its 50% interest in the Patterson Lake South joint venture uranium project in northern Saskatchewan, Canada by offering 5.725 shares of Fission for each Alpha share.
Additionally, the current shareholders of Alpha will receive all of the common shares of a new company Alpha Spinco, which is scheduled to spin out from Alpha.
Similarly, Fission shareholders will receive all of the common shares of a new company Fission Spinco, which is due to spin out from Fission.
Alpha and Fission will also provide $3m in cash to each of Alpha Spinco and Fission Spinco respectively, to fund future programmes at their other assets.
Fission chairman Dev Randhawa said: "Combining this incredible shallow and high grade uranium asset under one roof will benefit the shareholders of both companies."
Scheduled to be completed in November 2013, the proposed transaction is subjected to approval of the shareholders of both Alpha and Fissionas well as necessary regulatory approval.
