Paladin in $70m raising

Perth-headquartered uranium producer Paladin Energy has revealed plans to raise $70 million through a private placement.

The company is in a trading halt during a book building process to determine the pricing of the placement.

The announcement follows a large decline in Paladin's share price, as investors have reacted to wavering global support for nuclear power following the accident at Japan's Fukushima nuclear power plant.

Over the past six months, Paladin's share price has slumped from about $5.00 to $1.31 currently.

In a presentation to invetsors, managing director John Borshoff argued that the nuclear industry still had strong growth prospects.   

Paladin said the placement proceeds would be used to strengthen its balance sheet, placing the company, which has two producing mines in Africa and multiple development projects in Africa and Australia, in a more flexible financial position for the future.

UBS and Royal Bank of Canada are the joint lead managers for the placement.

The final outcome for the placement will be announced tomorrow, with the settlement date set at October 5^th.