Deal Maker of the Year Awards 2013
CANADA
WINNER - DEV RANDHAWA DEAL: Denison Mines to acquire Fission Energy
NAME: Dev Randhawa COMPANY: Fission Uranium POSITION: CEO WEBSITE:
www.fissionuranium.com
DEAL OVERVIEW Q
(1) Please summarise the transaction
We sold off our projects in the eastern Athabasca Basin, Quebec and Africa to Denison Mines. Essentially, we felt we had taken the flagship asset (Waterbury Lake) as far as possible and it was time for a mining/production company to take it to the next level. Our focus and our skillset is exploration not production so it was the right time to pass the baton. For us, for our shareholders, exploration is where the most upside is. This approach goes all the way back to Strathmore.
Q
What was your role within the transaction?
As CEO, I initiated the discussions and drove the deal forward. I was able to do so through my established, long-term business relationship with Lukas Lundin. Denison was looking to expand their assets in the Athabasca Basin and I recognised that their business plan dovetailed perfectly with ours.
Q
What were the challenges or difficulties presented?
The obvious challenge was value – finding the balance between buyer’s and seller’s optimum price. As it happens, we had actually come to an agreement just before our drill team hit in a major way at our Patterson Lake South (PLS) property. The discovery was so big that it collapsed the deal. However, both sides were reasonable and the negotiations up to that point served as the basis for the deal that ultimately went ahead.
Q
How did the transaction fit in with your overall business strategy
Perfectly. We had taken the J-Zone – our high- grade uranium discovery at Waterbury Lake – as far as we could on our own and it was time to monetize that asset for our shareholders. At the same time, we knew we had something very special on our hands at PLS. Selling the J-Zone allowed us to grow shareholder wealth at the same time as spinning out a new company, Fission Uranium, which could focus on PLS. The share price of both companies went up, which was definitive proof that the market approved of the deal. Our management and technical team went on to grow PLS which is now the most exciting high-grade, shallow depth discovery in the world.
BIO
Dev Randhawa is the CEO of Fission Uranium Corp and has a strong track record of building and managing high growth micro and small-cap companies in the resources sector. Originally an investment banker and financier, Dev Randhawa entered the uranium sector in 1996 as the founding CEO of Strathmore Minerals. Dev is perhaps best known for his role as the founding CEO and chairman of Fission Energy Corp, a highly successful uranium exploration company. In 2011, under Dev Randhawa’s leadership, Fission Energy was named a TSX Venture 50(r) Company.
In 2013, in a deal engineered by Mr Randhawa, Fission Energy sold the majority of its assets to Denison Mines and spun out Fission Uranium. Under his leadership, Fission Uranium has built its Patterson Lake South discovery into the world’s premiere high-grade uranium, shallow depth discovery.
Other notable career highlights include building Strathmore Minerals Corp. into a $457M market cap (as founder and CEO) and founding, building and subsequently selling Pacific Asia Energy Inc. (as President and CEO).
What are your thoughts and predictions within your sector for 2014 and beyond
Q
The fundamentals of the uranium sector are actually very strong. Nuclear energy is growing while at the same time, supply is under pressure. The HEU agreement, which provided about 24 million lbs of secondary supply, has finally ended and projects the world over have been postponed until the price of uranium rises. More demand, less supply. The last few weeks are showing the spot price is now starting to rise. I wouldn’t be surprised to see the spot price hit $45 or $50 in 2014. Ultimately, I think we’ll see it reach into the $70s which will producers to meet growing demand.
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