The Langer Heinrich mine in Namibia
PERTH (miningweekly.com) – Uranium miner Paladin Energy has initiated discussions with key stakeholders, including certain of its convertible bond holders, regarding its upcoming debt repayments as the planned sale of a stake in its mine in Namibia has been delayed.
The miner has to repay $212-million at the end of April.
Paladin earlier announced that it was unlikely to complete the sale of its 24% interest in the Langer Heinrich mine to Chinese firm CNNC Overseas Uranium Holdings. The miner is also selling up to 75% of its Manyingee project, in Australia, to MGT Resources. The two transactions are valued at a combined $205-million.
Definitive documents regarding the potential sale of the interest in Langer Heinrich to CNNC are yet to be executed, and Paladin told shareholders on Thursday that it was no longer likely that the transaction would close by the end of the fourth quarter.
As a result, Paladin is “actively investigating” alternative contingencies to assist in repaying its convertible bonds, and to fund any additional working capital requirements going forward, especially in light of the current low uranium spot prices.
Uranium is trading at a 60% discount to the $70/lb it fetched before the 2011 Fukushima nuclear disaster, in Japan. In July this year, uranium fell to an 11-year low of $24.90/lb, owing to an oversupply of the nuclear material.