The months-long process to sell Kelowna’s Fission Uranium Corp. to Australia’s Paladin Energy was finally completed two days before Christmas.
The companies first agreed to the $1.14 billion, all-stock transaction in June, but there were two significant delays before it could become official.
First, one of Fission’s investors, a Chinese company called CGN Mining Company Limited, took Fission to court to block the sale. The B.C. Supreme Court ruled in Fission’s favour in October, but earlier that month the company received a notice from the Minister of Innovation, Science and Industry ordering a national security review of the sale.
The federal government gave clearance to the sale on Dec. 18, and the sale was finalized on Dec. 23 when Paladin acquired all issues and outstanding Fission shares.
Paladin will have to adhere to several conditions under the Investment Canada Act, most of which involve China. The company must appoint a Canadian citizen and resident to its board who has no relationship with state-owned enterprises in China. Paladin has also agreed to not sell uranium from its Canadian operations to Chinese entities.
The sale means Paladin now controls the Patterson Lake South uranium property, which is a high-grade uranium mine and mill in Saskatchewan currently under development.
Fission CEO Ross McElroy has elected to resign, but the remaining key members of Fission’s executive team have indicated their desire to continue on in their current roles to progress the development of the Patterson Lake South project.
