Paladin Energy launches $300m raise to progress Patterson Lake South project
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The news: Uranium producer Paladin Energy has launched a $300 million equity raise to advance the development of its Patterson Lake South (PLS) project towards a final investment decision.
The numbers: The raise comprises a $231 million institutional placement of new Paladin shares, a Canadian "bought deal" private placement to raise $33 million, and a sale of $36 million of existing shares acquired as a result of the buyout of Fission Uranium.
Paladin also plans to launch a share purchase plan to raise a further $20 million.
All shares under the institutional placement and share purchase plan will be issued at a fixed price of $7.25 per new share. This marks an 8% discount to the stock's last close of $7.88.
The context: Paladin said the raise will provide the balance sheet flexibility to progress the PLS project in Canada, alongside the ongoing ramp up of its 75% owned Langer Heinrich mine in Namibia.
The PLS project is on track to be completed by the end of FY26, with full mining and processing plant operations planned for FY27.
What they said: "The equity raising allows our team to steadily progress work in a range of critical areas, including engineering, permitting, early site works and long lead item procurement, in order to keep on track for our targeted first uranium production at the PLS project by 2031," said Paladin managing director and CEO Paul Hemburrow.
The source: ASX
