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Paladin to sell Africa mine stake to China firm for $190 mln

Extract

20th Jan 2014

Paladin Energy Ltd. (TSE:PDN), the Africa-focused uranium miner, agreed to sell a 25 percent stake in its Namibian mine to China National Nuclear Corp. (CNNC) for $190 million, helping the Australian company to reduce debt.

The Perth-based company said in a statement today that it signed the deal to sell the equity stake in flagship Langer Heinrich uranium mining operation to China Uranium Corp. Ltd., a CNNC unit on Jan. 18.  Paladin still owns the remaining 75 percent of Langer Heinrich.

The transaction gives Paladin a cash injection after a long period of losses incurred mainly because of a steep drop in uranium prices in the aftermath of an earthquake that triggered an atomic crisis in Japan in early 2011.

“The significant cash injection from this minority interest sale will largely be applied to debt reduction, which the board considers an essential step during a time of unprecedented low uranium prices,” said Chief Executive Officer John Borshoff in the statement. “This will help stabilize the company.”

http://www.proactiveinvestors.com/companies/news/51386/paladin-to-sell-africa-mine-stake-to-china-firm-for-190-mln-51386.html