PDN has announced that Fission Uranium Corp. (TSX:FCU, Not Covered) shareholders have voted to approve the proposed combination of companies. Of votes cast at the FCU Special Meeting, 67.9% were in favour of the transaction, just exceeding the 66.66% required threshold. Our PDN company model assumes full completion of the Fission deal and construction of the Paterson Lake South Project starting January 2031. Approval by shareholders greatly improves the likelihood of the deal being finalised. Using today’s share values, the combined PDN-FCU entity would have a market capitalisation over ~A$3.4B and be dual listed on both Australian and Canadian exchanges. We upgrade our recommendation from Hold to Buy and Improve our Price Target to $10.55 (prior $10.40). Future catalysts include final regulatory approvals of the Fission deal and continued ramp-up success at Langer Heinrich. Argonaut will be attending a site visit to some of Kazatomprom’s (LON:KAP) (Not Covered, No Rating) Kazakhstan operations in early October. We will update our uranium price outlook following the visit.
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