- Paladin Energy (PDN) completes its institutional placement as part of its $215 million equity raise
- The placement raised around $200 million through the issue of approximately 278 million new shares at an offer price of 72 cents per share
- As announced yesterday, Paladin will launch a share purchase plan (SPP) to raise a further $15 million at the same offer price as the placement
- Paladin will have a pro forma cash position of $259 million after the equity raise and no corporate debt which will put the company in a strong financial position that de-risks the restart of the Langer Heinrich uranium mine
- PDN shares are up 1.27 per cent, trading at 80 cents
Paladin Energy (PDN) has completed its placement as part of its $215 million equity raise which the company said “attracted significant demand” from existing and new institutional investors in Australia and internationally.
The placement raised around $200 million through the issue of approximately 278 million new shares at an offer price of 72 cents per share, representing a 8.9 per cent discount to the last closing price on March 30.
“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,” said CEO Ian Purdy.
“Paladin can now confidently work towards a formal commencement of the Langer Heinrich mine restart project.”
As announced yesterday, Paladin also launched a share purchase plan (SPP) to raise a further $15 million and will offer eligible shareholders to apply for up to $30,000 at the same offer price as the placement.
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.
The $215 million equity raise will be applied to fund the restart of the uranium mining operations at the Langer Heinrich mine in Namibia, with commencement of early works to commence immediately.
A formal restart project launch is expected in July 2022 and Paladin is targeting commercial uranium production from Langer Heinrich in CY2024.
Paladin will have a pro forma cash position of $259 million after the equity raise and no corporate debt which the company says will put it in a strong financial position that de-risks the restart of Langer Heinrich and positions the company well for further uranium marketing initiatives.
PDN shares were up 1.27 per cent, trading at 80 cents as of 11:03 am AEDT.