14/12/2016 - 15:39

Paladin raises $5.1m from asset sales

14/12/2016 - 15:39

Bookmark

Save articles for future reference.

Paladin Energy has offloaded its entire shareholding in Deep Yellow, taking advantage of a share price spike after the uranium miner’s former managing director John Borshoff joined the junior explorer.

Paladin raises $5.1m from asset sales
John Borshoff joined Deep Yellow after leaving Paladin. Photo: Attila Csaszar

Paladin Energy has offloaded its entire shareholding in Deep Yellow, taking advantage of a share price spike after the uranium miner’s former managing director John Borshoff joined the junior explorer.

The sale was part of an asset disposal program by Paladin, which has pulled out all stops to deal with low uranium prices and a looming debt refinancing.

Paladin said it would raise about $2.5 million by selling a number for non-core exploration assets to Sydney-based unlisted company Uranium Africa Ltd.

These assets include the Oobagooma and Angela/Pamela projects in Western Australia and the Northern Territory respectively, and its interest in the Bigrlyi project in the NT.

“These assets are considered by the company to be non-core and it is unlikely that the company would be in a position to conduct any meaningful work developing these assets within the next decade,” Paladin said in a statement.

Paladin said it would raise about $2.6 million after selling its 10.6 per cent stake in Deep Yellow at 1 cent per share.

That price reflected the positive influence of Mr Borshoff joining Deep Yellow, after a long period running Paladin.

Deep Yellow’s share price more than tripled in October, peaking briefly at 1.5 cents.

Canada’s Sprott Group is one of Deep Yellow’s largest shareholders, after subscribing for stock at 0.44 cents per share in October.

The share price of both companies was unchanged today, with Paladin at 8.3 cents and Deep Yellow at 1.5 cents.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options