Paladin Energy has completed an institutional placement that will raise N$2.2 billion (A$200-million) in cash from an initially announced N$2.4 billion (A$215-million) capital raise initiative to restart operations at the Langer Heinrich uranium mine.
In addition to a single-tranche fully underwritten share placement, the company would also raise N$165 million (A$15-milion) through a share purchase plan.
Paladin on Friday announced that it had now received firm commitments for the placement of 278-million shares, priced at 72c each.
“We are delighted with the strong support we have received for the placement from high-quality existing and new institutional investors located in Australia and internationally and I would like to thank them for their support,” said Paladin CEO Ian Purdy.
“The placement is an important catalyst for the company as it provides sufficient capital to restart the globally significant Langer Heinrich mine, as well as to continue to advance our uranium marketing and exploration activities. 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.”
The new shares subscribed for under the placement are expected to settle on April 6, with allotment and normal trading on the ASX expected to commence on April 7. The Brief/Mining Weekly