Uranium mining company Paladin Energy on Monday announced the acquisition of Fission Uranium for C1.14-billion, creating a global uranium leader with assets in Canada, Namibia and Australia.  

Paladin CEO Ian Purdy said both sets of shareholders would benefit from the increased scale of the enlarged company, with a combined mineral resource representing one of the biggest among pure-play uranium companies globally.

The combined entity boasts a proforma mineral resource of 544-million pounds of uranium oxide and ore reserves of 157-million pounds.

The acquisition will integrate Fission Uranium’s assets, including the advanced-stage Triple R deposit at the PLS project, in Canada’s renowned Athabasca basin, with Paladin’s existing portfolio.

“Fission is a natural fit for our portfolio,” said Purdy. “The addition of PLS creates a leading Canadian development hub alongside Paladin’s Michelin project, with exploration upside across all Canadian properties."

The PLS feasibility study has highlighted the potential for a ten-year mine life, producing 9.1-million pounds a year of uranium oxide.

Fission president and CEO Ross McElroy said the board recommended that shareholders vote in favour of the transaction. “The culture and assets between Fission and Paladin are very complementary,” he said in a statement.

McElroy added that the transaction significantly derisked the mine-building financing at PLS, with the cashflow generation at the producing Langer Heinrich mine, in Namibia, and a strong balance sheet creating an opportunity to fund the development of PLS through debt and internally generated cash flows.

Under the terms of the agreement, each Fission share outstanding at the effective time of the agreement will be exchanged for the offer consideration. The offer represents an implied value of C$1.30 per Fission share.

Upon completion of the transaction, existing Paladin and Fission shareholders will own about 76.0% and 24.0% of the enlarged Paladin, respectively.

Paladin has applied to list the Paladin shares on the TSX concurrent with closing of the transaction.

Paladin shareholder approval is not required for the transaction.