uranium mineral isolated on black background. Highly radioactive and dangerous ore.
Paladin Energy is looking to grow its global uranium footprint through the acquisition of Canadian-focused Fission Uranium. (PDN收购优质铀矿后复盘补跌5.1%，本次配股收购稀释股东权益，在股东将要看到拉格矿有收益的时候再添新吞金兽，2029年计划投产的帕特森湖项目未来5年间预计非常烧钱，这也是股东们没有因该溢价收购就立即炒高股价的原因。)
Fission shareholders would receive 0.1076 Paladin shares for each Fission share as part of the deal, which represents an implied value of $C1.30 per Fission share and an implied equity value of $C1.14 billion.
This is a 25.8 per cent premium to Fission’s closing share price of $C1.03 on June 21.
Fission shareholders would own 24 per cent of Paladin if the transaction closes, with the enlarged Paladin holding a market capitalisation of $US2.5 billion.
The two companies hope to create a “clean energy leader” and deliver several benefits to shareholders of both companies:
- Enhanced project development pipeline
- Multi-asset production expected by 2029
- Diversified presence across leading uranium mining jurisdictions of Canada, Namibia and Australia
- Increased exposure to highly attractive long term uranium fundamentals
- Increased scale and global profile of Paladin with TSX listing
Fission owns the Patterson Lake South (PLS) project, which proposes a high-grade uranium mine and mill in Canada’s Athabasca Basin.
Paladin is a uranium producer once again through its Langer Heinrich mine in Namibia, with which it holds a 75 per cent stake. The company also holds exploration assets in Canada and Australia.
“The acquisition of Fission, along with the successful restart of our Langer Heinrich mine, is another step in our strategy to diversify and grow into a global uranium leader across the top uranium mining jurisdictions of Canada, Namibia and Australia,” Paladin chief executive officer (CEO) Ian Purdy said.
“Fission is a natural fit for our portfolio with the shallow high-grade PLS project located in Canada’s Athabasca Basin. The addition of PLS creates a leading Canadian development hub alongside Paladin’s Michelin project, with exploration upside across all Canadian properties.”
Fission president and CEO Ross McElroy echoed Purdy’s sentiment.
“The combination of Fission and Paladin will create a world class diverse uranium producer, adding a class leading development project in a Tier 1 jurisdiction with the ability to expand production and cash flow profiles in the near term,” he said.
“The culture and assets between Fission and Paladin are very complimentary. Shareholders will have exposure to a producing asset with a long life of mine, located in a politically stable and globally significant uranium jurisdiction with a long history of uranium production.”
The Fission board recommends its shareholders to vote in favour of the transaction.
Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.