Chinese boost for Paladin Energy
Australian mining house and owners of the Langer Heinrich mine, Paladin Energy got a boost from the China Investment Corporation totalling US$100 million in convertible bonds.
The mining house made the announcement this week. In February, Paladin announced the launch and pricing of an offering of US$100 million of senior, unsecured convertible bonds due 31 March 2020.
Commenting on the matter, Paladin’s Chief Executive Officer and Managing Director, John Borshoff said, “The investment by China Investment Corporation provides Paladin with additional funding flexibility and bolsters our cash position thereby further reducing the need for any additional funding in the medium term and enabling Paladin to fully capitalise on its strategic value. More importantly, Paladin´s new relationship with China Investment Corporation as one of the largest sovereign wealth funds in the world, sets a possible platform for Paladin´s future development and growth to become a true Tier 1 uranium producer amongst its peers.”
This follows an uptake witnessed in 2014 when a 25% stake of the Langer Heinrich mine was sold to the China National Nuclear Corporation by Paladin. Similarly, HOPU Clean Energy got a 15% stake in Paladin Energy for its part in recapitalising Paladin through a placement totalling US$52 million. HOPU Clean Energy’s placement caused quite a stir amongst Paladin’s Canadian shareholders. Quoting John McNiel at the time, a Canadian shareholder. he said, “I think the whole principle here is outrageous.”