Photo by: Reuters
TORONTO (miningweekly.com) – TSX- and ASX-listed Paladin Energy on Wednesday said that conditions required to release the escrowed $20-million nonrefundable deposit in the $190-million sale of 25% of its Langer Heinrich uranium project, in Namibia, to China National Nuclear Corporation (CNNC) had been satisfied and that it had received the funds.
The offtake component of the agreement, which was signed in January, allows CNNC to buy its pro rata share of products at the prevailing market spot price. There is also opportunity for Paladin to secure additional long-term offtake agreements with CNNC. It is expected that the agreement will enhance the long-term growth and development of the Langer Heinrich operation.
The company in January said that it would use the significant cash injection from the minority sale to reduce its debt, which was an essential step during a time of unprecedented low uranium prices.
The mine currently has a design capacity of about 5.2-million pounds of uranium production a year, following a successful optimisation and debottlenecking. The project is expected to produce 5.7-million pounds during 2014.
The completion of the transaction was subject to certain regulatory approvals, which Paladin said it had been advised would be obtained by June.