Vancouver — Aspiring uranium miner Paladin Resources (PDN-T, PALAF-O, PDN-A) plans a convertible bond offering to raise US$250 million for project development.
The Perth, Australia-based company has engaged RBC Capital Markets and UBS as joint lead managers and bookrunners in the offering of unsubordinated, unsecured convertible bonds, due in 2011.
Proceeds will be used to advance development of Paladin’s Kayelekera uranium deposit in Malawi, Southern Africa. A previous feasibility study, conducted on the project in 1990, reviewed an inferred resource of 11,547 contained tonnes (25.45 million lbs.) of U3O8.
Recently revised estimates by Paladin reviewed a new measured and indicated resource of 15.3 million tonnes grading 0.09% U3O8 (about 13,630 contained tonnes of U3O8) using a 0.03% U3O8 cutoff grade.
The company is undertaking a bankable feasibility study on Kayelekera and anticipates production around mid-2008 with annual output of about 2.3 million lbs. U3O8 over an estimated 10-year mine life.
Funds from the financing will also be used to establish a uranium marketing subsidiary, which will establish its own uranium inventory.
The payment and settlement date for the bond issue is expected around mid-December.
Paladin is also advancing its Langer Heinrich uranium project in Namibia. Mining has begun at the open-pit operation with commercial output expected by mid-2007.
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