Paladin to raise of A$525m to fund next stage of growth
Paladin Energy has launched a fully underwritten equity raising, comprising a A$474-million ASX institutional placement of new Paladin fully paid ordinary shares and a Canadian “bought deal” private placement to raise C$50-million pursuant to the listed issuer financing exemption, to raise a total of A$525-million.
Additionally, Paladin intends to invite eligible shareholders to participate in a non-underwritten share purchase plan (SPP) to acquire shares at the same price as the ASX placement to raise up to a further A$50-million, before costs.
The equity raising is expected to position Paladin for its next phase of growth, funding the ongoing development of the Patterson Lake South (PLS) project, in Canada; potential resource growth and mine life extension at the Triple R deposit at PLS; and advancing exploration opportunities across the broader Athabasca Basin region portfolio.
Net proceeds from the equity raising will be used to fund the PLS project’s planning and execution of the 2027 and 2028 capital works programme and early mobilisation, procurement and site-readiness activities, aimed at protecting the critical path and maintaining momentum ahead of the principal construction programme.
It would also be used for potential Triple R mine life extension and resource growth; and acceleration of Athabasca Basin region exploration and growth including follow-up drilling at Atlas and Saloon East and testing of high-priority regional targets across Paladin’s broader Athabasca Basin region tenure package.
Further, it would be used for balance sheet flexibility by establishing a clear platform through the repayment of existing debt to support the advancement of a funding solution for the PLS project.
“This equity raising allows us to accelerate Paladin’s growth strategy in the Athabasca Basin region and advance a range of value-accretive initiatives across both development and exploration. With the PLS project now firmly established as one of the most significant undeveloped uranium projects globally, we believe this capital positions us to unlock substantial value through project advancement, maintain momentum towards targeted first production in 2031 and capitalise on the long-term outlook for the uranium market,” says CEO and MD Paul Hemburrow.
“Recent exploration success at Atlas and Saloon East has reinforced our confidence in the broader district potential and supports an expanded exploration strategy aimed at growing and enhancing the already compelling PLS project development opportunity, while continuing to demonstrate the significant upside across our broader Athabasca Basin portfolio,” he adds.
In addition to its Canadian assets, the company also operates the Langer Heinrich mine, in Namibia, and owns exploration assets in Australia.