Monday mining news feat. Fission Uranium and First Mining Finance

POSTED ON May 04, 2015 BY James Fraser
CATEGORY First Mining Finance, Fission Uranium, Stories,

A good start to the week for gold up $12 a ounce to $1291 in early trading.

Here are a few of the mining headlines that caught my eye this morning.

Fission Uranium - (FCU:TSX) - Fission continues to intersect strong uranium mineralization at the the PLS project in Saskatchewan. This morning 10 angled drill holes were released from the R600W, R00E and R780E zones. Of particular interest is hole hole PLS15-352 (line 615W)which returned 28.32% U3O8 Over 12.0M within a larger interval of 11.09% U3O8 over 31.5m. Hole PLSS 15-632 is based on land is half a kilometre west of the Triple R deposit.

In my opinion FCU is the best uranium development project going right now. The maiden resource in January showed 79.6 M pounds indicated and 25.9 million pounds inferred resources. The PLS project continues to get larger as mineralization has been found in four zones over a 2.7 km strike length.

A PEA is expected to be completed this summer which will be a major catalyst for investors.

Ross McElroy, President, COO, and Chief Geologist for Fission, commented,

"We are continuing to see spectacular high-grade growth at R600W. With high-grade mineralization very near to surface, this land-based zone is located half a kilometer on trend from the Triple R deposit and remains open in all directions. The strength of the assays and robustness and style of the intersection show remarkable similarities to the Triple R deposit and continue to impress us. The addition of the spectacular mineralized intersection in PLS15-352, significantly upgrades the potential of the R600W zone. We are also very pleased to see further R780E zone growth on multiple lines."

Fission is cashed up after completing at $20 million dollar financing at the end of April at $1.50 per share (flow through).

News also from top uranium exploration company NexGen Energy (NXE:TSXV) that they will be issuing a $20 million dollar bought deal at 50 cents a share. NexGen remains a more speculative play than Fission and is trading at ~$100 million market cap compared to ~$450 million of Fission.

Read: Fission Hits 28.32% U3O8 Over 12.0M at R600W Zone

First Mining Finance -(FF:TSXV) - First Mining Finance a newly listed TSXV company has increased its takeover bid for Coastal Gold (COD:TSXV). A bidding war for Coastal has developed between First Mining and Sulliden (SMC:TSX). The new offer from First Mining works out to an implied value of 6 cents per COD share.

"We continue to be very interested in a business combination with COD, which we think would be in the best interests of our shareholders and the independent shareholders of COD," said Keith Neumeyer, chairman of First Mining. "Even though Sulliden has increased its offer that offer is still worth far less than the current market price of COD shares. We find it difficult to understand how the COD board could reject our offer in favour of a weaker offer from Sulliden. We are now increasing our offer so that all shareholders of COD can be aware that there is a clearly superior alternative to the Sulliden offer available to COD shareholders. Our renewed offer can only be accepted by COD if the independent COD shareholders vote down the undervalued Sulliden offer and we again urge all independent shareholders of COD to vote against the Sulliden offer. We are also calling on the board of COD to postpone the COD shareholder meeting to allow the independent shareholders of COD to make an informed decision on which offer they believe is better."

Coastal Gold has been recommending investors take the offer from Sulliden and a shareholder meeting is planned for May 6th.

Sulliden and First Mining are both after COD's high grade underground resource of 5.5 Mt at 4.77 g Au/t for 844,000 indicated ounces & 0.84 Mt at 4.11 g Au/t for 110,000 inferred ounces .

First Mining was set up to be a "mineral bank" and pick up projects during the current weak market environment with the goal to hold high quality development projects.

Leading First Mining is Chairman Keith Neumeyer who was the founder of First Quantum Minerals and First Majestic Silver.

Other people and companies who have had success with the "bank" model include Seabridge Gold and Ross Beaty buying out of the money copper deposits.

One small junior also using the same business model would be CopperBank (CBK:CSE).

An interesting business model that can be very rewarding to shareholders but can take a long time to play out.

Which offer would you vote on? I personally would vote for the revised First Mining offer.

Read: First Mining Delivers Renewed Proposal to Acquire Coastal Gold Corp.

Discuss in CEO Live

This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.

James Fraser

Mr. Fraser joined CEO.ca in October 2014. He is passionate about the mining industry. His passion led to co-authoring the e-book "Mining Stocks Investor Guide: A Guide to Investing in Mining Companies." He has a finance background and has completed his Canadian Securities Course (CSC) and Conduct and Practices Handbook (CPH). When Fraser is not "digging" up the latest mining stock, he can be found enjoying a wide variety of sports or travelling the world. More →

Twitter: @miningstocks

james@miningstocksguide.com

James Fraser

Twitter: @miningstocks

james@miningstocksguide.com

Disclaimer:

Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any significant positions will be disclosed explicitly. This article is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be — either implied or otherwise — investment advice. Thomas Humphreys, Pacific Website Company Inc., and other entities in which he has an interest, employees, officers, family, and associates may from time to time have positions in the securities or commodities covered in these publications or web site. We reserve the right to buy and sell such securities or commodities without notice to readers. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. The information herein may not be complete or correct; it is provided in good faith but without any legal responsibility or obligation to provide future updates. Neither Thomas Humphreys, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in these publications or web site.

Forward-Looking Statements: This article may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the potential of the Company's properties are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this article. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Always do your own due diligence. We seek safe harbor.