Paladin Energy says it has raised the targeted N$169 million from a share purchase plan (SPP), with proceeds to be used to restart operations at the Langer Heinrich uranium mine.
The funding was secured from over N$1.2 billion worth of applications, which forms part of a greater N$2.4 billion the miner plans to raise.
“The equity raise was an important catalyst for the company as it provides sufficient capital to restart the globally significant Langer Heinrich mine, as well as provide capital which will allow us to continue to advance our uranium marketing and exploration activities,” Paladin CEO Ian Purdy said.
The mine restart project is slated to formally commence in July, with early work activities to kick off right away, with the mine expected to return to uranium production in 2024.
Langer Heinrich was placed under care and maintenance in 2018 due to a decline in uranium market conditions.
Purdy noted that with the strength of the company’s existing uranium sales offtake with CNNC combined with the recent successful tender award and the continuing strong uranium market fundamentals, Paladin can now confidently work towards a formal commencement of the Langer Heinrich mine restart project.
Paladin has an offtake agreement with CNNC Overseas Uranium Holding Limited for up to 25% of the Langer Heinrich future life-of-mine production.
The latest pronouncement by the company comes as it secured a tender to supply uranium concentrates to a subsidiary of Duke Energy, a leading Fortune 150 North American power utility.
The Tender Award provides for the supply of up to 2.1M lbs of U3O8 over a six-year period commencing in 2024 (representing approximately 5% of total production over this period), with the utility having the option to extend these annual supply arrangements for another three years.
“The Tender Award is an important milestone in Paladin’s corporate progression and is a strong endorsement of the Company’s disciplined uranium marketing strategy. With the strength of the Company’s existing uranium sales offtake combined with the successful Tender Award and the continuing strong uranium market fundamentals, Paladin can now confidently work towards a formal commencement of the Langer Heinrich Mine Restart Project. The improving outlook for uranium markets and the transition towards the decarbonisation of global electricity generation provides the platform for an exciting period ahead for Paladin,” Purdy said.
Paladin Energy last year revealed that the restart cost estimates for its Langer Heinrich mine, to be N$1.2 billion (US$81-million).
As such its estimated life-of-mine (LoM) production target to increase from N$1.56 billion (76.1-million pounds) to N$1.59 billion (77.4-million pounds), over the 17-year mine life, with the estimated LoM C1 costs now estimated at US$27.40/lb, up from US$16.90/lb previously estimated, owing to increased estimated contract mining rates.
Paladin Energy Limited) is an Australian listed uranium company with a 75% stake in the Langer Heinrich Mine in Namibia.
