06:59 AM EDT, 06/24/2024 (MT Newswires) -- Paladin Energy, which is listed in Australia, will acquire Fission Uranium ( FCUUF ) in a deal that has an implied equity value of $1.14 billion, the companies said on Monday.

Fission shareholders will receive 0.1076 of a Paladin share for each Fission share held, an implied value of $1.30 per Fission share. That is a 26% premium to Fission's closing price on June 21 and a 30% premium to the 20-day volume-weighted average price on the same day.

At deal completion, Fission shareholders will own 24% of Paladin, which will have a pro-forma market capitalization of about US$3.5 billion. Paladin shareholders will own the remaining 76%. Paladin has applied to list its shares on the TSX.

Fission's board of directors received a unanimous recommendation from its special committee of independent directors and recommends that Fission shareholders vote in favor of the deal.

The transaction, which is scheduled to close later this year, will create a company with uranium mining in Canada, Namibia and Australia.

"Fission is a natural fit for our portfolio with the shallow high-grade PLS project located in Canada's Athabasca Basin," said Ian Purdy, CEO of Paladin. "The addition of PLS creates a leading Canadian development hub alongside Paladin's Michelin project, with exploration upside across all Canadian properties."