Sydney, Australia — MININGREVIEW.COM — 18 August 2009 – Paladin Energy Limited – a uranium production company listed on the Australian Securities Exchange, the Toronto Stock Exchange and the Namibian Stock Exchange – has announced that the first drawdown of US$84.5 million (R676 million) has been made on the US$167 million (R1.4 billion) finance package for its Kayelekera uranium mine in Malawi.
Revealing this in a letter to the ASX, Paladin confirmed that the first drawdown would be reimbursed to the company for funds spent on completing the project, while the remainder of the facility would be applied to the project and working capital expenditure.
The facility was provided by a syndicate of banks made up of Société Générale, Standard Bank and Nedbank Capital “’ the same syndicate of banks that provided project finance for the company’s Langer Heinrich Stage I in Namibia.
The Kayelekera uranium mine is currently in its production ramp-up phase, and will produce 3.3 Mlbs pa when it reaches full production..
“The successful drawdown on this facility in the face of the current credit markets stands testament to the robust economics of the Kayelekera uranium mine and the ongoing support from the lenders,” said managing director and CEO John Borshoff. “With the support of ECIC and Paladin’s commitment to source materials from South Africa during construction, Paladin has been able achieve a very competitive cost of funding when compared to other projects of this nature,” he added.