Paladin Energy (ASX:PDN) plans to undertake capital raising for up to US$75 million via institutional placement of shares for up to 15% of its issued capital.
This will be done via variable price bookbuild.
The proposed equity raising along with previously announced initiatives is expected to provide adequate funding into the September quarter of 2014 even if the spot uranium price was to remain at the average level of the past 12 months of US$42.50/lb.
The placement is subject to regulatory approvals including approval from Toronto Stock Exchange. Shares will resume trading on 5 August 2013.
Separately, it has reiterated its positive outlook for uranium prices, terminating negotiations on a planned sale of a minority interest in the Langer Heinrich Mine in Namibia.
Paladin believes that the strategic value of its flagship asset would not be reflected in the offer price due to the depressed spot uranium price of around US$35.50 per pound.
It outlined the attractiveness of Langer Heinrich in that the mine has a over 20 year mine life; is a technologically advanced operation and is operating above nameplate capacity.
It will postpone the sales process until there is more favorable price environment.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.