03/04/2017 - 13:49

Paladin, Avira deal falls over at final hurdle

03/04/2017 - 13:49

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Paladin Energy’s planned $US10 million sale of a 30 per cent stake in the Manyingee uranium project to Avira Energy has been thwarted, with Avira unable to secure financing in time.

Paladin, Avira deal falls over at final hurdle
The Langer Heinrich deposit is located in Namibia.

Paladin Energy’s planned $US10 million sale of a 30 per cent stake in the Manyingee uranium project to Avira Energy has been thwarted, with Avira unable to secure financing in time.

The Manyingee deal was subject to a termination date of March 31, prior to which Avira would need to clear all hurdles for the transaction.

The Sydney-based company secured Foreign Investment Review Board approval but failed to complete a capital raising by that deadline.

That was because of the changing political environment in Western Australia for uranium projects, Avira said, with the newly elected Labor state government taking a stance against the approval of new mines.

But the two companies will remain in discussions about Manyingee, which is located near Onslow.

Avira would have also had an option to acquire a further 45 per cent of the project for $US20 million had the deal been completed.

Shares in Avira were unchanged at 25 cents each, while Paladin remained under suspension.

Negotiations for a restructure of Paladin are continuing, the company says, as it attempts to deal with a large debt maturation expected this month and considers a sale of its share in the Langer Heinrich mine to Chinese company CNNC Overseas Uranium Holdings.

Paladin is also continuing discussions with a range of bondholders for amendments to standstill agreements which would prevent creditors moving in.

The company said it had secured a further three month waiver for creditor Nedbank, to the end of June, after it had failed to meet a minimum asset threshold.

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