Photo by: Bloomberg
PERTH (miningweekly.com) – Uranium miner Paladin Energy will issue a further $50-million in convertible bonds to China Investment Corporation (CIC), giving the miner additional flexibility to reduce its debt.
In February, Paladin raised $100-million through convertible bonds, which were issued to institutional, professional and sophisticated investors, and are due in 2020.
The company said this week that it had exercised an upsize option, and had agreed to issue a further $50-million in convertible bonds to CIC.
“The investment by CIC provides Paladin with additional flexibility and bolsters our cash position, thereby further reducing the need for any additional funding in the medium term, and enabling Paladin to fully capitalise on its strategic value,” said Paladin MD and CEO John Borshoff.
“More importantly, Paladin’s new relationship with CIC as one of the largest sovereign wealth funds in the world, sets a possible platform for Paladin's future development and growth to become a true tier-one uranium producer amongst its peers.”
The Chinese firm had already obtained Foreign Investment Review Board approval for the acquisition of the convertible bonds, and the issue of the $150-million convertible bonds was subject only to shareholder approval.
A general meeting had been scheduled for March 30.