Paladin Energy wants to raise $205m in capital

Shares in
uranium miner Paladin Energy have been halted as the company announced efforts
to raise $205 million in capital.

Singapore-based
HOPU Clean Energy
will take a $61 million placement which will see it own at least 13 per cent of
Paladin.

While $144 million
will be raised by offering existing investors shares for 26c each.

Paladin chief John Borshoff
said the recapitalisation package would allow the company to de-risk its
balance sheet, enhancing future funding flexibility.

HOPU senior managing
director Wendon Zhang has been invited to join Paladin’s board.

“We look
forward to welcoming HOPU to the Paladin share register as a long-term,
strategic investment partner with financial capacity,” Borshoff said.

“HOPU’s investment
demonstrates its confidence in the uranium industry and its understanding of
Paladin’s unique positioning in the uranium sector. It also increases Paladin’s
funding options going forward.”

Uranium spot
prices have recovered in recent months, going from lows of US$28/lb to a recent
high of US$44/lb.

Borshoff
said the post-Fukushima price dive was over, and said uranium was set for a
long period of price strength.

He said
supply shortfalls in the mid-term along with nuclear growth in China and Japan
would boost sentiment in the sector.

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