LIFTING a trading halt, Australian-based global uranium miner Paladin Energy announced it has received binding commitments from investors to subscribe for a total of 262,812,641 ordinary fully paid shares at an issue price of 11.5 cents per share to raise A$30.2 million.
The issue price represents a 14.8% discount to the closing price of Paladin shares on the ASX of 13.5 cents on 10 September 2019, the trading day immediately prior to the announcement of the proposed capital raising.
Paladin’s Chairman Rick Crabb says this placement, coupled with the anticipated sale of the company’s 85% interest in the Kayelekera Mine in Malawi, will put the group in a strong position to meet future working capital requirements.
The new shares to be issued under the placement are expected to settle on Wednesday 18 September 2019 and allotment is expected to occur on Thursday 19 September 2019. No shareholder approval was required.
Paladin also says it will offer eligible existing shareholders in Australia and New Zealand on Paladin’s share register as of 10 September the opportunity to apply for up to A$30,000 worth of new Paladin shares (at the same price as shares issued under the placement and without paying brokerage fees) through a share purchase plan (SPP). The SPP aims to raise up to A$7 million and is not underwritten.
Paladin has two mines in Africa, its flagship project Langer Heinrich in Namibia and Kayelekera in Malawi. The Kayelekera mine was officially opened in April 2009 and is capable of operating at design production rates of 3.3 million pounds per annum (Mlbpa) uranium, while the Langer Heinrich mine has a production capacity of 5.0Mlbpa.
The uranium production company has placed both mines on care and maintenance due to the sustained low uranium spot price and to preserve resource and shareholder value. But in March 2019, Paladin commenced feasibility studies aimed at re-positioning the Langer Heinrich operation for a restart when a suitable uranium incentive price is reached and to develop opportunities to reduce operating costs and potentially recover vanadium.