Paladin to Raise A$215 Million for Uranium Mine Restart; Signs Supply Deal With Duke
By Rhiannon Hoyle
Australia's Paladin Energy Ltd. said it will seek to raise up to 215 million Australian dollars (US$161 million) to restart its Namibia uranium mine citing improved market conditions, and that it was awarded a tender to potentially supply uranium concentrates to a unit of Duke Energy Corp.
Paladin on Thursday said the equity raising comprises a fully underwritten share placement for A$200 million as well as a non-underwritten share purchase plan for up to A$15 million more.
The funds will be used to restart its Langer Heinrich Mine in Namibia. A formal restart project launch is expected in July 2022 and Paladin said it will aim to be producing uranium from the site in 2024.
Paladin said the decision was supported by "continuing strong uranium market fundamentals with positive macro tailwinds for uranium driven by nuclear's position as a reliable, low carbon baseload power source."
Earlier Thursday, Paladin also said it was awarded a tender with Duke, which it said gave it further confidence to restart the mine.
However, that agreement's volumes, and therefore potential sales revenue, "is, in itself, not considered by Paladin to be material in the context of the overall production from the Langer Heinrich Mine," it said in a separate filing.
The agreement is for Paladin to possibly supply up to 2.1 million pounds of uranium oxide U3O8 over a six-year period commencing in 2024--roughly 5% of planned total production over that period, Paladin said. Duke would have the option to extend the supply arrangement for a further three years.
Paladin has an existing supply deal with a subsidiary of China Uranium Corp. for up to 25% of future life-of-mine production at the operation.
Write to Rhiannon Hoyle at firstname.lastname@example.org
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March 30, 2022 19:46 ET (23:46 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.