Mineral exploration company Fission Uranium has announced a ‘bought deal’ to support its PLS project in the Athabasca Basin, in Saskatchewan, Canada.

Towards this end, the Canadian company signed an agreement with Canaccord Genuity and SCP Resource Finance, representing a syndicate of underwriters.

The underwriters have agreed on a bought deal, committing to buy 63,560,000 common shares at C$1.18 each, aiming to raise C$75m ($55m) in gross proceeds.

The company has also provided the underwriters with a 30-day option, exercisable at the offering price, to acquire up to another 15% of the common shares sold to manage over-allotments and for market stabilisation purposes.

This offering is anticipated to conclude around 12 February 2024, contingent upon regulatory consents.

The net proceeds from the offering are earmarked for the exploration and development of the PLS project.

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By GlobalData

Additionally, funds will support working capital and general corporate objectives.

Fission Uranium, headquartered in Kelowna, British Columbia, is the proprietor and developer of the PLS uranium project.

The proposed high-grade mine and mill is situated in the renowned Athabasca Basin in Saskatchewan, Canada, known for its significant uranium deposits.

Last year in April, Fission Uranium applied for a licence with the Canadian Nuclear Safety Commission for construction of a uranium mine and milling facility at its PLS project.

Fission Uranium president and CEO Ross McElroy said: “I am very pleased to confirm that the construction licence application for the PLS project has been submitted.”