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Paladin Energy (ASX:PDN) has seen its shares defy a heavily red Thursday to jump slightly on news Canada’s allowing its buyout of Fission Uranium.
Listed on the TSX, Fission has been in Paladin’s line of sight for a while – and now the deal is set to pass with a final green tick from the Minister of Innovation, Science and Industry.
With all cards remaining in order, Paladin expects the buyout to be complete by February.
Paladin’s rationale for eating up Fission paints a world where the combined projects will allow Paladin leverage in a tight uranium market; boast a globally notable resource estimate, and it’ll also allow Paladin to list on the TSX.
Handy it gets a chance to ditch the still-terribly-quiet Aussie bourse.
And in parlance HotCopper users are surely familiar with, the merger will introduce to Canada a new uranium “hub.” Whatever that actually means.
“Shareholders of Paladin, including former shareholders of Fission, will benefit from the increased scale of the combined company that will be one of the largest pure-play uranium companies globally, as well as greater exposure to, and interest from, international capital markets,” Paladin CEO Ian Purdy said.
Under the deal, Fission shareholders get 10.7 Paladin shares on a 1:1 basis.
“The combination of Paladin and Fission creates a world-class diverse uranium producer operating in multiple countries, with a high-quality portfolio of production, development and exploration assets.”
Despite the positive momentum, the company will need to tackle lower uranium prices whether it likes it or not.
The nuclear fuel feedstock commodity has fallen from its early 2024 highs; now sitting at US$74.80/lb. Paladin shares are down -21% YTD.
But will that be enough to dissuade traders? Perhaps not – Paladin is one of the more liquid uranium stocks at this time. As of mid-arvo Sydney time, $20M worth of shares had traded hands on Thursday.
PDN last traded at $7.80/sh.
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