- Paladin Energy (PDN) launches $215 million equity raise to fund the restart of its Langer Heinrich uranium mine in Namibia, comprising of a single tranche share placement to raise $200 million and a share purchase plan (SPP) to raise an additional $15 million
- Under the placement, the company will issue approximately 278 million new shares at an offer price of 72 cents per share, which represents a 8.9 per cent discount to the closing price on March 30
- Following the raise, Paladin will have a pro forma cash position of $259 million and no corporate debt which de-risks the restart of the Langer Heinrich mine
- The placement will close on April 1, and settle on April 6 with allotment of shares to begin April 7, and the SPP offer is expected to open on April 6 and will close April 26
- PDN shares traded at 79 cents prior to a trading halt
Paladin Energy (PDN) has launched a $215 million equity raise to fund the restart of its Langer Heinrich uranium mine in Namibia.
The equity raise comprises of a single tranche share placement to raise $200 million and a share purchase plan (SPP) to raise an additional $15 million which will be offered to eligible Paladin shareholders with an Australia or New Zealand registered addresses.
Under the placement, the company will issue approximately 278 million new shares at an offer price of 72 cents per share, which represents a 8.9 per cent discount to the last closing price on March 30 and a 12 per cent discount to the five-day volume-weighted average price (VWAP).
The SPP will offer eligible shareholders to apply to up to $30,000 at the same offer price as the placement.
All shares will rank equally with existing shares.
Paladin CEO Ian Purdy said the company can “now now confidently work towards a formal commencement of the Langer Heinrich mine restart project”.
“The extensive workstreams we have conducted reinforce our confidence in Langer Heinrich as a low risk, robust, long-life operation that is poised to take advantage of the improving uranium market conditions and deliver sustainable value creation for all of our stakeholder.”
Following the raise, Paladin will have a pro forma cash position of $259 million and no corporate debt which de-risks the restart of the Langer Heinrich mine.
The company said that the decision to restart production at the Langer Heinrich mine has been supported by a “successful uranium marketing strategy” and a well-defined mine restart plan that provides a low-risk pathway to a return to production.
A formal restart project launch is expected in July 2022 with commencement of early works, including ordering of long lead time capital equipment will commence immediately.
Paladin indicates that the placement shares will be closed on April 1, settled on April 6 with allotment of shares to begin April 7.
The SPP offer is expected to open on April 6 and will close April 26, with announcement of results and issue of new shares on May 3.
PDN shares were trading at 79 cents prior to the company’s trading halt.