Paladin (ASX:PDN) launches AU$200M equity raise, enters trading halt

2 min read | March 31, 2022 07:57 PM AEDT | By Samta

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Paladin (ASX:PDN) launches AU$200M equity raise, enters trading halt — Image source: © Wutzkoh | Megapixl.com

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Highlights

Uranium miner Paladin Energy has executed a capital raise to restart production at Namibia based uranium mine.

The company has entered trading halt amid the capital raise announcement.

PDN shares have gained over 83% in last 12 months.

Shares of uranium miner, Paladin Energy Limited (ASX:PDN), are garnering attention following a series of announcements.

Today, the company announced a capital raise to restart work at a Namibia-based mine, further announcing a share purchase plan of up to AU$15 million.

However, the share price is on the ice today as the company entered a trading halt.

More details on Capital raise

PDN entered a trading halt today amid the capital raise announcement, including a fully underwritten institutional payment to raise AU$200 million to restart its Namibia-based uranium mine - Langer Heinrich Mine.

PDN expects to earn Pro-forma cash of AU$259 million with zero corporate debt with this equity raise.

PDN will issue the new shares for 72 cents per share, giving an 8.9% discount on the last closing price of 79 cents. Also, the price further reflects a 12% discount on the 5-day volume-weighted average price.

The company decided to restart production at the mine following a successful uranium marketing strategy. Moreover, PDN expects a formal restart project launch in July 2022.

Furthermore, this solid financial position eliminates the risk of restarting Langer Heinrich Mine, positioning the company for further uranium marketing initiatives.

Share purchase plan

Meanwhile, the company also announced a non-underwritten share purchase plan to raise an additional AU$15 million. As per the SPP, eligible shareholders can apply for up to AU$30,000 worth of New Shares.

Uranium sales tender award

PDN further announced that it has received a uranium sales tender award which will supply uranium concentrates to a subsidiary of US-based Duke Energy Corporation.

As per the deal, PDN will supply up to 2.1 million pounds of triuranium octoxide over six years from 2024. This tender is a crucial step forward to restarting production at the Langer Heinrich mine.

PDN share price movement

Although the stock has dropped 16% on YTD and 10% in the last three months, it has gained over 83% over the last 12 months.

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