Canadian miner Fission Uranium says to go hostile with Alpha Minerals

Mon Aug 26, 2013 9:31am EDT

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Aug 26 (Reuters) - Fission Uranium Corp, a Canadian miner, said it would consider making a hostile bid for Alpha Minerals Inc, which did not respond to an offer of about C$171 million ($162 million) last week.

The deal, if successful, will give Fission complete control of the Patterson Lake South uranium project in the Athabasca basin in northern Saskatchewan.

Fission is the operator of the project, with a 50 percent stake. The rest is owned by Alpha Minerals, a gold and uranium miner.

Fission said it made an offer to Alpha Minerals on Aug. 23 and the offer expired on Sunday.

British Columbia-based Fission had offered to pay C$7.26, representing a premium of 6 percent to Alpha's closing of C$6.85 on Friday.

Alpha shares were up 4 percent at C$7.19 on Monday morning.

"If Alpha continues to refuse to engage with Fission on the proposal, Fission will consider making a formal offer directly to Alpha's shareholders," Fission said.

Dundee Capital Markets Inc is advising Fission on the deal.

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