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Paladin Energy (ASX:PDN) has completed the acquisition of Fission Uranium Corp six months after the $1.5 billion merger deal originally began, with the all-scrip deal netting final clearance just before the Christmas break.
News came last week that Canadian regulators had green-lit the deal after a sizeable delay.
The deal, which will see Fission shareholders now take 24% of Paladin’s shares. Paladin will also become a dual-listed company, trading on the Toronto Stock Exchange.
Operationally Paladin will expand quite a bit: The Western Australian uranium producer will now integrate Fission’s management into its own works “with a focus on optimising and advancing the Patterson Lake South project.”
The deal’s closure saw Paladin shares lift slightly, up around 0.7% in value at 10:28am Sydney time, though most of the upwards momentum was already priced in when Canada gave the buy-up a tick at the end of last week.
Some investors may also be waiting to see how Paladin leverages its new power; it already took the WA company 10 months longer than planned to action the Fission acquisition – settling projects into a rhythm together may take quite a bit longer than Paladin’s CEO Ian Purdy had originally promised back in February.
Paladin is now also required to appoint a Canadian citizen – operating from Canada – to its board within the next 12 months; that move may impact plans.
The WA producer has also promised not to sell uranium from the Patterson Lake South project to any customers, distributors, or end-users from China (though current business partner CGN stands exempt from that limitation).
Paladin does have ties to China elsewhere in its portfolio, with the China National Nuclear Corporation owning 25% of Langer Heinrich. PDN owns the other 75%.
No matter the little details though, Mr Purdy is very hopeful for Paladin’s future – and especially the new working relationship with Canada.
“Canada has a strong regulatory framework already about where you can sell uranium product and we will comply with that framework and we’ll focus on supplying our uranium from our Canadian projects to Canada and allies,” he pledged.
Paladin shares last sold at $7.86 through Tuesday morning’s trade.
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