Langer Heinrich operations unfazed
The sale of a 24% stake in the Langer Heinrich uranium mine by its parent company Paladin Energy is not likely to affect operations, its spokesperson Bernadette Bock assured the Economist last week after reporting earlier that Paladin was eyeing a US$200 million windfall that would subsequently diluting its ownership to 51%.
Speaking to Bock, she said, “The sale of a 24% interest in the Langer Heinrich Mine will mean that the buying party will be able to take around 24% of their interest as an off-take agreement in product (uranium concentrate). It will not impact local operations as Paladin will still remain with 51% and as such, a majority interest holder and management entity of the operation.”
The deal expected to be completed before the end of the year is kept tightly under wraps, with no indication of who the intended buyer is. Bock added on the sale issue, “As we have to abide by the terms and rules of our disclosure requirements, we are not at liberty to disclose which parties we have spoken to at this stage. Once we have finalised terms and the deal comes binding, we will update the market with more information.”
Paladin issued a statement a fortnight ago in which it said, “Paladin currently owns 75% of LHM and has signed a non-binding terms sheet with a major participant in the global nuclear power industry to sell it a 24% interest in LHM. If it proceeds on its current terms, the sale is expected to raise US$175 million cash for the company and be accompanied by long-term arrangements for uranium off-take. The parties are using their best endeavours to prepare definitive documentation for formal execution, including a sale and purchase agreement, a shareholders agreement and documentation for the uranium off-take arrangements”.Paladin continued “Paladin is working towards a formal close of the transaction in the fourth quarter of 2016 calendar year. Other than as set out in this announcement, the other key terms of this proposed transaction remain confidential, including the identity of the counter-party. Further announcements will be made, as appropriate, including the identity of the counter-party. On completion of the transaction, Paladin will continue to hold 51% of Langer Heinrich Mine and be the operator”.