Photo by: Bloomberg
PERTH (miningweekly.com) – Uranium miner Paladin Energy has finalised the sale of a minority interest in its Langer Heinrich operation, in Namibia, and is now using the money to refinance the project’s finance facility.
Paladin has sold a 25% stake in the uranium project to a subsidiary of China National Nuclear Corporation (CNNC) for $190-million, while an offtake component of the deal would allow CNNC to buy its pro rata share of production at the prevailing market spot price.
Paladin told shareholders on Thursday that the company had refinanced the existing $110-million project finance facility and the $20-million working capital facility into a new $70-million syndicated loan facility.
The proceeds from the Langer Heinrich minority sale would be used to repay about $30.83-million of the existing facility, taking the outstanding balance to $70-million.
Paladin MD and CEO John Borshoff said the new facility would provide significant cash flow benefits and further strengthen Paladin’s financial position, adding that the yearly principal repayments would be reduced by $32.4-million over the first three-and-a-half years of the facility, from $18.33-million a year to A$9.09-million a year, with the first repayment of $4.55-million only due at the end of December.
“Once again, Paladin has been able to refinance the facility in a tough uranium price environment, while significantly reducing the security requirements and medium-term principal repayments,” said Borshoff.
He added that the miner continued to focus on ways to reduce its overall debt levels, and the refinancing was another step in this process.