17/03/2021 - 12:00

Paladin launches $219m raising

17/03/2021 - 12:00

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Subiaco-based Paladin Energy is using funds secured from a placement and fully underwritten rights issue to progress the restart of its uranium operations in Namibia.

Paladin launches $219m raising
Paladin is planning to restart its Langer Heinrich uranium operations in Namibia. Photo: Paladin Energy

Subiaco-based Paladin Energy is using funds secured from a placement and fully underwritten rights issue to progress the restart of its uranium operations in Namibia.

Paladin said about $US81 million ($A105 million) in capital was required to restart its Langer Heinrich mine, which was placed into care and maintenance in May 2018 due to declined uranium market conditions.

Proceeds from the equity raising will also be used to repay about $US157 million ($A204 million) in outstanding senior secured notes, under a two-staged redemption process.

Paladin said the raising would reset the company’s capital structure and significantly improve its financial strength and resilience.

Chief executive Ian Purdy said it was the final step in a ‘transformational’ reset for the business.

“The company now has the benefit of increased capital flexibility, which provides a solid foundation management to continue its focus on the restart of Langer Heinrich and value creation for equity holders in an improving uranium market,” he said.

About 347.3 million shares will be issued under the placement to raise $128.5 million, at an issue price of 37 cents, while about 243.7 million shares will be issued under the 1-for-8.5 rights issue.

Canaccord Genuity and Shaw and Partners are acting as joint lead managers, underwriters and bookrunners to the raising.

Paladin requested a trading halt this morning, which is expected to lift on March 19.

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