Paladin hangs on bank valuation

Paladin Energy will be left to sweat for up to a month on an independent valuation of its stake in the Langer Heinrich uranium mine, as a critical $US277 million debt repayment looms.

Paladin announced today that China National Nuclear Corporation has formally agreed to allow an independent international investment bank to undertake a valuation of the company’s proposed sale of its 24 per cent stake in the Langer Heinrich mine in Namibia, the result of which is expected to be revealed by July 20.

“The expert agreed to provide the valuation as soon as possible and in any event within 30 days of the date of the appointment,” Paladin said.

Paladin will use the proceeds from the sale to meet a $US277 million debt obligation with France-based utility EDF, and is negotiating a standstill to defer that obligation.

EDF wrote to Paladin earlier this month to inform the troubled uranium miner that it had 30 days to repay the debt in full, at which point Paladin put the standstill proposal forward.

Paladin shares have been suspended from trade on the ASX since then.

“Paladin has approached EDF to negotiate the terms of the standstill to defer its obligation to pay the outstanding amount and expects the voluntary suspension to remain until at least the end of June, pending resolution of this matter,” the company said.

Paladin has been trying to offload its Langer Heinrich stake to CNNC in order to pay off debt since late last year.