Paladin Energy (ASX:PDN, TSX:PDN) has made a proposal to Électricité de France (EdF) regarding EdF’s US$200 million pre-payment under the 2012 long term off-take contract.
The company has made a proposal to EdF, which would see it share security over Paladin’s assets with Paladin’s bondholders.
If EdF is to accept this proposal, Paladin expects to receive the outstanding payment under the terms of the off-take contract.
Should EdF not accept the proposal, the matter will proceed to independent expert valuation in accordance with the terms of the off-take contract.
The independent expert valuation is to ensure that EdF has sufficient security for its pre-payment.
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.