Paladin Energy Ltd. said Sept. 11 that it intends to raise A$30.2 million through a placement to qualified, institutional and sophisticated investors, and A$7 million through a share purchase plan to eligible shareholders.
The company intends to use the proceeds for its working capital requirements, including care and maintenance costs associated with its African mines, exploration tenement costs, corporate costs and fees associated with the restart of the Langer Heinrich uranium and vanadium project in Namibia, for which optimization studies are ongoing.
The placement, of which Euroz Ltd. is the sole lead manager, will consist of about 262,812,641 shares at 11.5 Australian cents apiece, while the share purchase plan will provide shareholders the opportunity to apply to purchase up to A$30,000 of the company's shares at the same issue price with the placement.
Paladin said that the share purchase plan is not currently underwritten and that the company reserves the right to scale back any applications if the demand exceeds A$7 million.
The settlement of the shares under the placement is expected on Sept. 18, with allotment and normal trading to commence the day after, while the share purchase plan is expected to open on Sept. 17 and close on Oct. 4.
In June, the company said it has agreed to sell its 85% interest in the Kayelekera uranium mine in Malawi to Hylea Metals Ltd. subsidiary Lotus Resources Pty. Ltd., a joint venture with Chichewa Resources Pty. Ltd.
