Paladin Energy (ASX:PDN) has commenced discussions with key stakeholders regarding its upcoming debt repayment obligations which include convertible bonds to the value of US212 million.
Repayment is due 30 April 2017 and stakeholder engagement involves discussions with certain bond holders.
Paladin remains in discussions with CNNC Overseas Uranium Holdings Ltd regarding the potential sale of a 24% interest in the flagship Langer Heinrich uranium mine for US$175 million.
The company owns 75% of the low-cost Langer Heinrich, the world’s fourth largest open pit uranium mine, located in Namibia.
The definitive agreements contemplated in the previously announced non-binding term sheet for the potential sale of a 24% interest have not yet been executed.
Background
Paladin is a uranium production company with two mines in Africa and projects in Australia and Canada with a strategy to become a major uranium mining house.
The Langer Heinrich mine in Namibia is Paladin’s flagship project having commenced production in 2007.
Langer Heinrich is a calcrete uranium deposit being mined through a conventional open pit with a project life of 20 years.
The Stage 3 expansion is complete with production at 5.2 million pounds per annum. Studies are underway for a further expansion.
The company’s second mine, Kayelekera, is located in the African country of Malawi and was placed in care and maintenance in May 2014 after opening in 2009.
Paladin owns a number of pipeline uranium deposits and projects located in Australia and Canada.
Paladin also holds an 82.08% interest in Summit Resources Ltd (ASX:SMM).