Paladin's Langer Heinrich stake worth $526m

Paladin Energy says it is entitled to receive about $US416 million for its majority stake in the Langer Heinrich uranium mine in Namibia, following an independent evaluation of the asset.

Uranium miner Paladin, which fell into the hands of KPMG representatives as administrators earlier this month, said this morning that an independent expert had valued its shares at about $US162 million, while its outstanding interest-bearing loans had a face value of $US254 million.

Paladin has been pursuing the sale of its 75 per cent stake in Langer Heinrich to CNNC Overseas Uranium Holdings, a subsidiary of the China National Nuclear Corporation, which holds an option over the asset as the owner of the outstanding 25 per cent interest.

“If CNNC were to exercise its potential option and to acquire the interest bearing loans, subject to receipt of consents, Paladin would ultimately be entitled to receive about $US416 million, depending on interest accrued and any other changes in loan amounts or capital structure up to the date of payment,” Paladin said.

“Whilst the independent expert’s valuation is final, Paladin is currently in the process of reviewing the valuation for errors and continues to consider the validity of the potential option.”

CNNC has 29 days to take up its option to acquire the stake.

Paladin owes about $US277 million to creditor Electricite de France, while convertible bond holders are owed $US362 million.

Meanwhile, Paladin also announced it would be removed from the TSX official list from the close of market on August 10, for failing to meet the continued listing requirements of the exchange.

“The administrators will seek to transfer the TSX register to the ASX as part of any proposal that results in the company retaining its ASX listing,” it said.