Uranium miner Paladin Energy’s stock has lifted on the ASX after the company announced it had refinanced its debt facilities for its Langer Heinrich and Kayelekera projects.
Paladin said the new arrangements, provided by Namibia’s Nedbank Capital, the Standard Bank of South Africa and Standard Bank Namibia, would result in a $US59 million reduction in debt repayments over 2014 and 2015.
The debt facility for the company’s flagship mine, Langer Heinrich, has largely the same conditions as its previous arrangement, except for an increased amount, an extension of term and a reduction in principal repayments.
Paladin said its $US48.1 million Kayelekera project finance facility would be repaid in full immediately.
“Overall, this rationalisation in the project financing reduces the company’s debt position and provides the benefit of substantially reduced repayments over the next three years, conserving operational cash flow,” Paladin chief executive John Borshoff said in a statement.
Paladin stocks were up around 7 per cent at 11:35AM, trading at 53.2 cents.
Today’s debt refinancing comes shortly after Paladin told investors it remained confident of securing a suitor for a significant stake in the Langer Heinrich mine.
The company recorded a $40 million loss in the September quarter, largely on the back of depressed conditions in the uranium market.
