Pursuant to the agreement, Fission and CGN Mining have agreed to proceed towards a CDN$82,226,059 private placement (the "Offering") in which CGN Mining would make a strategic investment in Fission which will result in CGN Mining owning approximately 96,736,540 common shares of the Company plus an additional number of common shares equal to 19.99% of the number of common shares issued by Fission prior to the closing of the Offering pursuant to the exercise of outstanding convertible securities of the Company (the "Subscription Shares").
The Subscription Shares will be issued pursuant to a subscription agreement between Fission and CGN Mining (the "Subscription Agreement") at a price of CDN$0.85 per Subscription Share on a private placement basis. The Subscription Shares may not be traded for a period of four months plus one day from the closing of the Offering.
Fission and CGN Mining have also agreed to proceed towards entering into an offtake agreement pursuant to which CGN Mining will agree to purchase uranium production from the Company’s PLS Property (the "Offtake Agreement"). The Offtake Agreement and the Subscription Agreement, are referred to as the "Transaction Agreements".
Fission Uranium chairman and CEO Dev Randhawa said: "This is an historic moment for Canada’s uranium industry. It is the first time a Chinese company has invested directly in a Canadian uranium company. We are thrilled that CGN Mining has chosen to invest in Fission, PLS and the Triple R deposit. CGN Mining’s understanding of the uranium business is superb and we are excited at the opportunity to work with them. CGN Mining’s knowledge and expertise will be invaluable as we progress PLS and add to shareholder value."
CGN Mining chief financial officer Xing Jianhua said: "CGN Mining and Fission Uranium have worked hard together to forge this partnership. Both companies have a strong drive to cooperate and achieve the synergy which will result in sustained, mutual benefit."
CGN Mining Company Limited (‘CGN Mining’) is an investment holding company listed on Hong Kong Stock Exchange (HKSE) and mainly engaged in the trading of natural uranium. In order to become a resource development and energy services company with a focused business with clear development direction, and assets with high sustainability, CGN Mining acquired 100% equity interests in Beijing Sino-Kazakh Uranium in 2014.
The controlling shareholder of CGN Mining is China Uranium Development Company Limited, a fully-owned subsidiary of China General Nuclear Power Corporation, which is a leading global clean energy corporation in China.
