In January 2008, Fission entered into an earn-in agreement with a group led by Korea Electric Power Corporation under the newly created KEPCO Consortium for the joint development of the Waterbury Property.
The consortium was granted the exclusive right to earn up to a 50% interest in the project by incurring C$14m ( approximately $13.24m) in exploration expenditures over a three year period and by completing a private placement for 1,000,000 common shares of Fission Energy at a price of C$1.00 per share.
Fission retained a 2% NSR royalty in the project, in addition to a ‘back-in provision’ allowing the company to reacquire a 10% interest for C$6 million (approximately $5.67m).
With the completion of the Waterbury Lake Winter 2010 exploration program, the KEPCO Consortium satisfied its earn-in requirements and the terms of the earn-in agreement required the parties to form a limited partnership to continue the exploration and development of the Waterbury Property.
The partnership will be formed and governed pursuant to the terms of the partnership agreement with both, Fission and the KEPCO Consortium each holding a 50% interest in the partnership.
Fission will continue as operator of the Waterbury Lake Project.
