Photo by: Bloomberg
PERTH (miningweekly.com) – Uranium miner Paladin Energy has abandoned a sales agreement with ASX-listed Avira Energy over a 30% interest in the Manyingee project, in Western Australia.
The two companies in July last year signed a binding term sheet under which Avira would acquire an initial 30% interest in the project for $10-million, and a subsequent 45% interest for a further $20-million.
Paladin on Monday said that While Avira had been able to satisfy a number of the conditions of the sale, including a positive shareholder vote and approval from the Foreign Investment Review Board, the company did not close the required capital raising within the pre-agreed timeframe to allow for the transaction to complete.
Avira told shareholders that the current environment for new uranium mines in Western Australia was challenging and, as a result, investors who were previously committed to supporting the company’s capital raise have now withdrawn.
The two companies remain in discussions regarding the Manyingee project, with Avira telling shareholders that it will continue to seek other “worthwhile” uranium and resource projects that potential investors will find compelling.