Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Paladin Energy has completed a A$30.2-million share placement to institutional and sophisticated investors.
The company will issue approximately 262.81-million shares, at a price of 11.5c each, with the placement price representing a 14.8% discount to Paladin’s closing price on September 10.
The placement was conducted under the company’s existing capacity, and did not require shareholder approval.
“This placement, coupled with the anticipated sale of Paladin’s 85% interest in the Kayelekera mine, in Malawi, will put the company in a strong position to meet future working capital requirements,” said chairperson Rick Crabb on Friday.
In addition to the share placement, Paladin earlier this week also announced a share purchase plan (SPP), aimed at raising up to A$7-million.
Under the SPP, shareholders will be given the opportunity to purchase up to A$30 000 of additional shares in Paladin, also at a price of 11.5c a share. The SPP will open on Sept 17 and close on October 4.
Funds raised from both the share placement and the SPP will go towards funding the care-and-maintenance costs for Paladin’s uranium mines in Africa, its exploration tenement costs, corporate costs and costs associated with the Langer Heinrich restart and optimisation studies, which are currently under way.
Langer Heinrich was placed on care and maintenance in May of last year, as uranium prices remained low.