Paladin Energy Ltd (ASX:PDN) dipped to a three-week low of A$7.55 in early trade before recovering to A$7.74, down 1.8%. The uranium miner remains above the A$7.25 level at which it recently secured A$300 million through a fully underwritten equity raising.
The capital raise comprised an institutional placement on the ASX, a Canadian “bought deal” private placement and a treasury share sale. Paladin also plans a non-underwritten share purchase plan to raise up to a further A$20 million.
Proceeds will be used to advance the Patterson Lake South Project in Canada towards a final investment decision, alongside the ramp-up of operations at its Langer Heinrich Mine in Namibia.
Managing director and chief executive officer Paul Hemburrow said: “The funds secured will provide us with the balance sheet flexibility to advance the PLS Project towards a FID while simultaneously completing the ramp-up of operations at the LHM.”
The raising comes as uranium prices remain in focus amid geopolitical moves to bolster supply security, including US President Donald Trump’s plan to expand US strategic reserves.