KELOWNA, BRITISH COLUMBIA, Mar. 24, 2010 (Marketwire) -- FISSION ENERGY CORP. ("Fission" or the "Company") (TSX VENTURE:FIS) is pleased to announce the appointment of Ron Netolitzky to the Company's Executive Advisory Board. Mr. Netolitzky, has extensive exploration and mine development experience, achieving success with three major gold discoveries in Canada: Eskay Creek, Snip and Brewery Creek, all of which subsequently became successful producing mines. Mr. Netolitzky later became Chairman of Viceroy Exploration, which achieved exploration success with its Gualcaymayo gold project in Argentina, resulting in the sale of the company to Yamana Gold. More recently, he became Chairman of Brett Resources Inc., which is being acquired by Osisko Mining Corp., and currently serves as a director of several publicly traded exploration companies. Mr. Netolitzky has strong expertise in uranium exploration, having taken part in the uranium rush of the early 1970's in Saskatchewan after the Rabbit Lake discovery, and is the former President and Chief Executive Officer of Santoy Resources Ltd. (now Virginia Energy Resources Inc.), an exploration stage company focused on discovering and developing high-grade uranium deposits throughout North America. The Company welcomes Mr. Netolitzky to the Executive Advisory Board. His expertise will benefit Fission's team as the Company continues to explore its "J-Zone" uranium discovery at Waterbury Lake and other properties in Saskatchewan's Athabasca Basin, and elsewhere.
The Company has granted incentive stock options to Mr. Netolitzky to purchase 150,000 common shares at a price of $.80 per share for a period of 5 years subject to the policies of the TSX Venture Exchange.
The Company also confirms that the bought deal private placement announced on March 9, 2010, is scheduled to close on April 7th, 2010. Fission entered into a letter of engagement with Dundee Securities Corporation and a syndicate of underwriters (the "Underwriters") under which the Underwriters agreed to purchase on a bought deal private placement basis 6,250,000 units (the "Units") of the Company at a price of $0.80 per Unit and 2,110,000 flow-through common shares (the "Flow-Through Common Shares") at a price of $0.95 per Flow-Through Common Share for total gross proceeds of $7,004,500, with the Underwriters having the option to purchase up to an additional 3,750,000 Units at $0.80 per Unit, exercisable in whole or in part at any time up to 24 hours before the closing date. Each Unit will consist of one common share plus one-half of one transferable common share purchase warrant with each whole purchase warrant (a "Warrant") exercisable into a common share at a price of $1.00 per share for a period of 24 months from closing. In the event that the Company's common shares trade at a closing price on the TSX Venture Exchange of greater than $1.60 per share for a period of 20 consecutive trading days at any time after four months and one day after the closing date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
In connection with the Offering, the Underwriters will receive a cash commission equal to 6.0% of the gross proceeds raised under the offering and that number of non-transferable broker warrants equal to 6.0% of the number of Units and Flow-Through Common Shares sold. Each Broker Warrant will be exercisable into one common share of the Corporation for a period of 24 months from the Closing Date at a price of $1.00 per share.
All securities issued will be subject to a four month hold period. The offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.
The Company is also undertaking a concurrent non-brokered private placement of up to 2,500,000 units of the Company at a price of $0.80 per unit. Each such unit will consist of one common share of the Company and one-half of one transferable common share purchase warrant. Each whole warrant will be exchangeable into one common share of the Company at a price of $1.00 per share for a period of 24 months from the date of issue, subject to the acceleration option described above.
The proceeds of the financings will be used to advance development of the Company's properties, for acquisitions and for general working capital.
FISSION ENERGY CORP. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia. FISSION ENERGY CORP. Common Shares are listed on the TSX Venture Exchange under the symbol "FIS".
ON BEHALF OF THE BOARD
Devinder Randhawa, Chairman & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.