PDN Paladin Energy Ltd

Paladin Energy Ltd (TSX:PDN)(ASX:PDN) ("Paladin" or the "Company") is pleased to
advise that settlement to sell a 25% joint-venture equity stake in its flagship
Langer Heinrich uranium mining operation in Namibia to CNNC Overseas Uranium
Holding Limited, a wholly owned subsidiary of China National Nuclear Corporation
(CNNC), the leading Chinese nuclear utility, for consideration of US$190M has
been completed. 


The offtake component of the agreement allows CNNC to purchase its pro-rata
share of product from Langer Heinrich at the prevailing market spot price. 


About China National Nuclear Corporation

Paladin is pleased to have been able to attract CNNC as a joint-venture partner,
given the stature of this highly regarded organisation in China and
internationally and given its ability to develop, build and operate nuclear
power plants. Having this well respected member of the Chinese nuclear power
industry participating in Langer Heinrich is a very significant and positive
development for both the Company and for Namibia.


As a major force in the Chinese national nuclear technology industry, CNNC has a
full range of nuclear-technology industries and plays an important role in
developing national nuclear power and related power plants.


CNNC is mainly engaged in the scientific research and development, construction
and operation in such fields as nuclear power, nuclear fuel cycle, nuclear
technology application and nuclear environmental engineering, as well as foreign
economic co-operation and import and export businesses. Currently, it also
assumes the roles as one of China's major nuclear investors, key nuclear power
technology developer, principal designer and general contractor for domestic
nuclear power plants (both in operation and under construction), operating
technology service provider and nuclear power plant exporter, domestic franchise
supplier for nuclear fuel cycle, primary force of expertise in nuclear
environmental engineering, and the backbone organ for nuclear-technology
applications.


Outcome

The Langer Heinrich Joint Venture represents a formidable partnership focused on
advancing global uranium production. The joint venture will ensure, with
increasing uranium prices, the long term growth and development of the globally
important mining operation at Langer Heinrich. Obtaining direct access to
sufficient global uranium supply is an essential element for China to be able to
safeguard and grow this strategically important sector. 


Paladin has been successful in attracting a highly-respected organisation such
as CNNC because of the Company's achievements within the conventional uranium
mining industry. 


With this major initiative to introduce a minority joint venture partner in
Langer Heinrich now completed, the door is open to contemplate other
opportunities utilising the unique platform Paladin has developed in the global
uranium mining industry to strengthen its balance sheet, pursue further
consolidation and, through this, also prepare the Company to grow into a major
Tier 1 uranium producer.


The Managing Director/CEO of Paladin, Mr John Borshoff, said: "We are delighted
to have concluded this transaction with the introduction of one of the world's
leading nuclear industry participants into our world-class Langer Heinrich
project. The significant cash injection from this minority interest sale will
largely be applied to debt reduction. This will help stabilise the Company's
balance sheet, establishing an incredibly strong platform that will enable us to
maximise the value of our assets and ensure increased production of much needed
uranium once the price is sufficient to support the planned future growth of
nuclear energy in China and elsewhere."


Mr Borshoff added: "Again I remind everyone we also have developed a solid
relationship with what is currently the world's largest nuclear utility
Electricite de France (EdF), which provided a US$200M prepayment in January
2013. With Paladin having now consummated an important strategic long term
relationship with CNNC, the Company significantly has 2 major utilities with key
interest in Paladin's future".


The Director-in-General, Department of Geology and Mining of CNNC Mr Du Yunbin
stated: "I do believe, through the investment in the Langer Heinrich project,
CNNC and Paladin will develop a long-lasting business relationship which is
beneficial to each other and also bring long-term influence to the global
uranium mining industry. We treasure this valuable business opportunity with
Paladin. After completion the strengths of CNNC and Paladin will continue to
focus on production optimisation to ensure future cost reductions."


Paladin is being advised by financial advisers JPMorgan Australia Limited and
Leonardo & Co (Paris) and by legal advisers Herbert Smith Freehills.


About Paladin

Paladin is a publicly-listed company with listings on the Australian, Canadian
and the Namibian stock exchanges and has its headquarters in Perth, Western
Australia. The Company specialises in uranium exploration, project development
and uranium mining operations. It is the only company in the world to have
developed two modern conventional uranium mines in the past 20 years and is
recognised for successfully applying innovative mining technologies to both its
Langer Heinrich Mine in Namibia and its Kayelekera Mine in Malawi. Paladin has
an installed capacity to produce a total of 8.5Mlb per annum from both these
operations. While creating this production base over the past eight years,
Paladin concurrently established a strategically important, geographically
diverse, project pipeline to support future growth of its uranium production
base. Paladin has succeeded in positioning itself uniquely amongst the major
uranium suppliers of the world with demonstrated successful achievements and
offers a proven platform from which to replicate the growth that it has achieved
over the past eight years with minimal risk.


ACN 061 681 098

FOR FURTHER INFORMATION PLEASE CONTACT: 
Paladin Energy Ltd
John Borshoff
Managing Director/CEO
+61-8-9381-4366 or Mobile: +61-419-912-571
john.borshoff@paladinenergy.com.au


Paladin Energy Ltd
Greg Taylor
Investor Relations Contact
+1 905 337-7673 or Mobile: +1 416-605-5120 (Toronto)
greg.taylor@paladinenergy.com.au

Paladin Energy (TSX:PDN)
Historical Stock Chart
From Dec 2024 to Jan 2025

Paladin Energy (TSX:PDN)
Historical Stock Chart
From Jan 2024 to Jan 2025