11/09/2019 - 12:24

Paladin to raise $37m

11/09/2019 - 12:24

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Uranium company Paladin Energy has announced it will raise $30.2 million through a share placement and a further $7 million from a share purchase plan, with the proceeds to help cover the cost of maintaining its mothballed African mines.

Paladin to raise $37m
Paladin is raising funds for care and maintenance costs at the Langer Heinrich mine in western Namibia and Kayelekera mine in Malawi.

Uranium company Paladin Energy has announced it will raise $30.2 million through a share placement and a further $7 million from a share purchase plan, with the proceeds to help cover the cost of maintaining its mothballed African mines.

The placement comprises 263 million ordinary shares at 11.5 cents per share, with Euroz acting as sole lead manager.

Eligible shareholders in Australian and New Zealand will be able to purchase up to $30,000 of Paladin shares at the same issue price as the placement under the SPP.

The company said it would use the funds raised for its working capital requirements, including care and maintenance costs at its Langer Heinrich mine in western Namibia and Kayelekera mine in Malawi.

Funds will also go towards exploration tenement costs, corporate costs, and costs associated with the Langer Heinrich restart and optimisation study currently under way.

Paladin said it expected its cash balance to increase from $US25.4 million (as at June 30) to approximately $46.2 million, excluding proceeds from the share purchase plan.

In June, the company sold 85 per cent of its stake in the Kayelekera mine in a deal that Paladin said would significantly improve its forward cash position.

Paladin sold 65 per cent to West Perth-based Hylea Metals and 20 per cent to its joint venture Chichewa in exchange for $200,000 in cash and $4.8 million in Hylea shares, plus deferred royalties of 3.5 per cent from production capped at $5 million.

Shares in Paladin are in a trading halt at 13.5 cents per share.

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