Earlier this year I was interviewed by the Midas Letter.
The reason for the interview was the $85 million investment that CGN Mining made in Fission Uranium. The investment was made at a premium of CDN $0.85 per share and grabbed headlines throughout the industry. It was the first time a Chinese mining company had invested directed in a Canadian resources company and means that we are now one of the best-funded junior resource companies in the industry.
Strength from China
Dev Randhawa, CEO of Fission Uranium
Having the Chinese onboard is a big deal because when it comes to the nuclear sector, China is leading the charge in just about every way and their power companies have the money to make investments and acquisitions at a time when most other companies simply don’t. I also think it’s telling that of all the uranium projects out there that CGN could have invested in, they chose ours..
With such a large investment in place our cash levels are obviously very high and it means that we don’t have to go out there to raise money for some time. Considering how the markets are at the moment, that’s a particularly good position to be in.
The interview
The interviewers, Ed Milewski and James West, were also very interested to hear my comments on the price of uranium. I reminded them that when I first got into this business, we were looking at just $7 per pound and it stayed that way pretty much until 2004. I could see that the long term fundamentals were strong so I kept at it and was in the business when there was a flood at Cigar Lake. That put the price increases into overdrive and it went as high at $140 per pound. $7 to $140. Quite the spike.
I believe the long term view of the sector remains very positive based on the reactors being built and the number that are planned or on order. While we wait for the upturn, we’ll keep building our asset and exploring for new discoveries…
Dev Randhawa
Dev Randhawa is the founding Chairman and CEO of Fission Uranium. He has won numerous awards for his work in the industry, including Northern Miner Magazine ‘Mining Person of the Year 2013’ and as part of the Fission team, Mining Journal Excellence Award 2015 for Exploration.
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