China is showing its commitment to a nuclear future with an $82-million investment in Canada’s Fission Uranium.
In a market beset by downward price movements and a lack of investor interest, Fission Uranium (TSX:FCU) shareholders can rest easy knowing that the company continues to take positive steps forward.
Kicking off the second-to-last week of 2015, Fission announced that it’s entered into a binding letter of intent (LOI) with CGN Mining Company, a Chinese investment holding company engaged in trading natural uranium. Under the LOI, CGN will make a strategic investment in Fission worth approximately $82 million.
CGN’s investment will consist of a $82,226,059 private placement for roughly 96,736,540 common shares, plus an additional number of common shares; all in all, the investment will bring CGN’s stake in Fission to 19.99 percent. The shares will be priced at $0.85 each.
In a note to clients, Cantor Fitzgerald analyst Rob Chang states that in his firm’s opinion, the valuation of the transaction is low; however, he chalks that up to weak market conditions. Chang concludes, “[g]iven the weak financing markets and a need to add cash, FCU has added a highly sought-after partner at a 25% premium to its market price.”
“We are thrilled that CGN Mining has chosen to invest in Fission, PLS and the Triple R deposit,” Fission CEO Dev Randhawa adds in a press release. “CGN Mining’s understanding of the uranium business is superb and we are excited at the opportunity to work with them. CGN Mining’s knowledge and expertise will be invaluable as we progress PLS and add to shareholder value.”
A first for China: Investing in Canadian uranium
While the investment is big news for Fission, it is also a big move for China. As Randhawa outlines in Fission’s release, “[t]his is an historic moment for Canada’s uranium industry. It is the first time a Chinese company has invested directly in a Canadian uranium company.”
Likewise, Chang believes the transaction “highlights [China’s] desire for stable jurisdictions with a solid history of production.”
Given the many high-grade, highly feasible uranium projects in Canada’s north, the move by CGN could be indicative of things to come. Indeed, Canada is the second-largest uranium producer globally, and as such is well positioned to help China fill its growing need for uranium.
CGN’s controlling shareholder, China Uranium Development Company, is a wholly owned subsidiary of China General Nuclear Power, a leading energy company in China. CGN’s strategic investment in Fission comes only days after China’s State Council approved the construction of four additional nuclear power generators, bringing the total number of reactors approved for construction in 2015 to eight.
Through its aggressive reactor construction plans, and this latest investment, China is leaving no doubt that it is committed to nuclear power as a means of energy generation. The country’s plans are expected to help bolster prices, which are still sitting at US$36 per pound of U3O8.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
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Investor Insight
Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.

The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.

The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
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