Paladin Energy has been requested by CNCC to determine the fair market value of its stake in the Langer Heinrich mine, indicating it may acquire this interest. This follows uranium miner Paladin Energy’s announcement regarding its restructure proposal and a potential option in favour of CNNC Overseas Uranium Holdings, which could give the company the right to acquire Paladin Energy’s interest in the Langer Heinrich mine “in certain solvency-related scenarios”, said Paladin Energy.
Paladin Energy owns 75% of the issued share capital of Langer Heinrich Mauritius Holdings, the holding company of the owner of Langer Heinrich mine.
Paladin Energy said the process of determining fair value would be the first step in a process that may lead to the exercise of the potential CNNC option.
In January this year, Paladin Energy said it would enter into a proposal to restructure its balance sheet, which will reduce its debt obligations and extend the maturity of its debt.
Paladin Energy said that in the absence of further progress with the potential sale of a 24% interest in Langer Heinrich uranium mine, the purpose of the restructuring is to address the upcoming maturity of its outstanding $212 million convertible bonds, which are due on 30 April 2017.
The company believes that the new balance sheet restructuring proposal represents a holistic solution that provides a stable and sustainable capital structure for the benefit of all stakeholders and a platform for future growth when the uranium market improves.
The uranium miner said in July 2016 that it plans to sell a portion of its interests in two of its projects to raise in excess of $200 million.
As part of Paladin Energy's strategic initiatives process with regard to partnerships, strategic investment, funding and corporate transactions, the company proposed the sale of 24% of its Langer Heinrich mine in Namibia, as well as the potential sale of up to 75% of its Manyingee mine in Australia, to raise in excess of $200 million.