29/09/2011 - 11:33

Paladin placement priced at $1.20 per share

29/09/2011 - 11:33

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Paladin placement priced at $1.20 per share

Paladin Energy says it has completed the book build for a $68.2 million share placement, putting a $1.20 per share price tag on the capital raising initiative, first announced yesterday.

The price represents an 8.4 per cent discount to Paladin’s last closing share price on the Australian Securities Exchange.

The Africa-focused miner's stocks have taken a hammering since the Fukushima nuclear disaster in Japan, dropping from around $5.00 to its current level.

Paladin’s stock has tumbled since emerging from a trading halt today, down 11.45 per cent to $1.16.

Paladin chief executive John Borshoff said the placement received strong support, which acknowledged the company’s standing as one of the leading independent companies in the uranium sector.

“We believe today’s raising, together with future operational cash flows and proceeds from our current strategy to monetise certain non-producing assets, will provide significant financial flexibility and provide a sound platform for the company to achieve its corporate objectives,” Mr Borshoff said.

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

The settlement date for the placement has been set at October 5th.  

 

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