Major capital raising for Paladin

Uranium company Paladin Energy has raised $419 million in order to fund acquisitions and further exploration.

Australian uranium company Paladin Energy has raised $419 million in order to fund acquisitions and further exploration, the company announced yesterday.

The money was raised through an institutional private placement of 93.45 million ordinary Paladin shares priced at $4.60 each, which represents a 6.1% discount on the company’s closing price on Wednesday 9 September.

With projects in both Australia and Africa, Paladin will use the new funds to take further advantage of the burgeoning global uranium market, chief executive John Borshoff said.

“Proceeds from the raising will enable Paladin to advance its existing portfolio of uranium assets,” he said.

“Paladin believes that with its balance sheet strength and development expertise, the company is well placed to partner both junior uranium companies and downstream companies seeking to commercialise uranium opportunities.”

Fellow Australian uranium company Toro Energy is also set to engage in a capital raising after the company last night requested a trading halt from the Australian Securities Exchange.

Toro requested the trading halt, “pending capital-raising initiatives through a share placement”.

No details of the proposed raising were released, but industry speculation suggests Toro is seeking to place its stock at $0.15 a share, which would be a 36% discount to its last sale price of $0.24 a share.

Toro last month also announced a $20 million placement from US investment fund YA Global Master.

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