Uranium miner and explorer, Paladin Energy is looking for more than $400 million in a capital raising.
The company yesterday asked for a trading halt on its shares and issued this statement.
The Perth-based company announced plans to place up to 15% of its capital with institutional investors.
The price and terms of the offer will be determined after an overnight marketing push, to be undertaken by global joint lead manager RBC Capital Markets and UBS and three co-managers.
The company, which is also listed on the Toronto Stock Exchange, will use the funds to advance merger and acquisition and inorganic growth opportunities.
It wants to progress the Langer Heinrich Stage three project in Namibia and expand exploration and pre-development programs in Australia.
The capital raising will also enhance Paladin’s balance sheet flexibility to ensure it remains well placed to take advantage of opportunities in the international nuclear industry as they arise, it said.
The trading halt will remain in place until markets reopen on Thursday.
Paladin shares last traded on Tuesday at $4.90.
Paladin is a uranium production company with two operating mines in Africa and projects in Australia and says it has a strategy to become a major uranium mining house.
"Since 1998, during a period of sustained downturn in global uranium markets, Paladin has accumulated a quality portfolio of advanced uranium projects each having production potential.
"The Langer Heinrich Uranium Mine in Namibia is now operational with a targeted annual production of 5.2Mlb uranium oxide and a mine life maintainable at approximately 20 years.
"The Kayelekera Uranium Mine in Malawi was officially opened in April 2009 and has been commissioned with the plant showing capability to operate throughout its flowsheet with yellowcake produced during this phase.
"The 3.3Mlb pa project is currently in its production ramp-up phase. Paladin recently announced the first drawdown under the Kayelekera Project Financing Loan.
"This private placement is subject to a trading halt in Australia which will remain in place until the markets resume trading on the ASX on Thursday, 10 September 2009. Paladin expects that trading will continue normally on the TSX on Wednesday, 9 September 2009," the company said.
