PERTH (miningweekly.com) – ASX-listed Paladin Energy has raised the first A$192.5-million of its A$218.7-million target, having completed the institutional placement and institutional component of its entitlement offer.
The company earlier this week unveiled plans to raise equity by way of a fully underwritten prorata accelerated nonrenounceable entitlement offer of A$90.2-million and an institutional placement of 347.3-million shares to raise A$128.5-million.
The funds raised would be used to redeem outstanding senior secured notes, and to set the company on a path to restart production at its Langer Heinrich mine, in Namibia.
Paladin on Friday said that the company had received significant demand during the institutional offer bookbuild from both new and existing shareholders.
“We are delighted by the strong support we have received for the equity raise from a broad range of high quality, domestic and international institutions which, we believe, reflect confidence in this truly transformational reset of Paladin’s balance sheet,” said CEO Ian Purdy.
“This is an important milestone for Paladin, with proceeds from the equity raise being applied to the full redemption of outstanding senior secured notes, which will deliver optionality on future funding structures and strengthen the company’s uranium marketing position.
“We are also pleased to be offering participation in the equity raise to our existing eligible retail shareholders, with the retail entitlement offer scheduled to open on March 24,” Purdy said.
Paladin is hoping to raise some A$26.2-million in the retail component of the entitlement offer, which will close on April 9.