Paladin buys Candian uranium assets

Paladin Energy has moved into the Canadian uranium market, buying the uranium assets of Aurora Energy Resources in a deal worth $C261 million ($A261 million).

Aurora is a wholly owned subsidiary of Fronteer Gold and holds title to assets in the central mineral belt of Newfoundland in eastern Canada.

Paladin considers the belt to be one of the few remaining, underexplored uranium districts in the world, offering opportunities for both existing and new developments.

The company takes control of the assets via the issuance of over 52 million Paladin shares.

Managing director and chief executive John Borshoff said the deal provides Paladin with entry into a major global uranium district.

"The board and I welcome our expansion into Canada, a major uranium producing region which any company genuinely aspiring to be a tier 1 producer must have in its asset portfolio."

Fronteer Gold president Mark O'Dea also welcomed the purchase, saying he believed Paladin would now have one of the steepest growth periods in the uranium industry.

Shares in Paladin were up 4.28 per cent to $5.12 in morning trade.