Fission Energy receives buy rating from Dundee Capital Markets

Fission Energy Corp (CVE:FIS) received another "buy" rating on Tuesday, this time from Dundee Capital Markets, again in light of the Cameco-Hathor bid.
Dundee said it believes Fission shares are currently trading at a 19% to 29% discount, in light of the possibility of the Cameco takeover, valuing the junior uranium company between $0.84 and $0.95 per share.
Assuming Fission has the potential for between 11 and 18 million pounds of uranium, the equities research firm said it infers a project value of between $94 and $154 million for Fission's joint venture Waterbury Lake property, half of which would be attributable to Fission.
Dundee noted that Fission's J-Zone East, J-Zone and Highland zones at Waterbury are seen as a 370 metre extension to the Roughrider deposits, Hathor's (TSE:HAT) most significant assets, located in the Athabasca Basin of Saskatchewan.
"While our studies suggest that Fission's mineralization may have an average grade around 3% (much like Roughrider's initial resource estimate), Fission too has similar potential to delineate higher grade uranium resources. Its best assays measure up to 46% over 2m and 14.7% over 6m," Dundee's report said.
"We believe that ultimately the Fission property could be required in order to develop all of the Hathor mineralization -partially due to the proximity of the property boundaries to Roughrider mineralization.

"But also because it provides further mineralization to what has become the most exciting new uranium camp in the Athabasca Basin."

Including Fission's 24 million potential pounds of uranium at the Dieter Lake project iN Quebec, the firm values Fission at a range of $85 million and $121 million, which equates to $0.84 to $0.95 per share.
Dundee's report comes shortly after uranium giant, Cameco (TSE:CCO) made its hostile bid for Hathor official, making a public offer of CAD $3.75 per Hathor share. The deal is valued at $520 million.
The $3.75 per-share cash proposal was delivered in written form by Cameco to Hathor following the close of market last Friday, but Cameco, one of the world's largest uranium producers, said that it decided to make the offer announcement after discussions with Hathor failed to result in a board-supported agreement.
Hathor's Roughrider deposit is estimated to contain indicated resources of 17.2 million pounds of uranium in the west zone, plus another 40.7 million pounds of inferred resources in the east and the west zones.
The Roughrider deposit is strategically located roughly 25 kilometres northwest of Saskatoon, Saskatchewan-based Cameco's Rabbit Lake mill, making Fission, and its  concessions, a target.
In addition, Fission has further upside potential up its belt, as it is not "anywhere near" finished delineating its J-Zone deposit at Waterbury, as it remains open in several directions.
"While perhaps two years behind Hathor in exploration, what is apparent is that Fission already has more strike length potential than Hathor," added Dundee.
Aside from Waterbury and Dieter Lake, Fission also holds its Patterson Lake South property, where a 5 kilometre by 900 metre long boulder field was recently discovered, with grades of up to 40% uranium.
A total of 74 cobble and boulder samples were taken, with 25 returning assays of at least 10% uranium. While Dundee said this property can not yet be properly valued, it remains a source of "excitement".
Fission's stock on the TSX-Venture Exchange rose 5.88% as of 3:49 pm EDT, at $0.72. Meanwhile, both Cameco and Hathor's stocks rose, 1.8% to $22.60 and 3.8% to $4.10, respectively.