JOHANNESBURG (miningweekly.com) – Uranium miner Paladin Energy will apply for its securities to be reinstated to official quotation on the ASX, the Australia-based company said on Friday, announcing the completion of its restructuring and the appointment of two new directors.
With the deed of company arrangement (DOCA) effected, deed administrators have retired and the day-to-day management and control of Paladin has reverted to the company’s directors. The two new board appointments are iCobalt MD David Riekie and former interim CEO and MD of Atlas Iron Daniel Harris.
The DOCA was put forward to the administrators of Paladin by a group of the company’s unsecured bondholders, known as the Ad Hoc Committee. The DOCA’s key terms included the debt-for-equity swap, the raising of $115-million pursuant to the issue of a high-yield secured note and the reinstatement of Paladin to trade on the ASX.
In terms of the DOCA, 98% of Paladin’s shares have been transferred to creditors and other investors and only 2% are retained by shareholders. If a shareholder held 10 000 Paladin shares before the restructuring, they will now hold 200 shares.
Creditors all agreed to a restructuring proposal in December, although major creditor Electricité de France (EDF) previously said that it may seek to have the DOCA terminated.
Paladin appointed administrators in July last year after the company was unable to agree a delay to the repayment of $277-million it owed EDF.
On Wednesday, Paladin published its quarterly activities reports for the June, September and December quarters, as well as its June 2017 annual report.
The most recent quarter’s results show that the Langer Heinrich mine, in Namibia, produced 873 107 lb of uranium oxide (U3O8), up 4% on the prior quarter. Sales were at 1.24-million U3O8 at an average selling price of $22.39/lb.
The Kayelekera mine, in Malawi, remains under care and maintenance.