China Uranium Corporation has notified Paladin Energy that it has received all required regulatory approvals and has satisfied the conditions precedent for the completion of the US$190 million purchase of the 25% joint venture interest in the Langer Heinrich Mine in Namibia.
Earlier this year, Paladin agreed to divest of a 25% stake in the Langer Heinrich mine to a subsidiary of China National Nuclear Corporation (CNNC).
An offtake component of the sales agreement allows CNNC to buy its pro rata share of products at the prevailing market spot price. There is also opportunity for Paladin to secure additional long-term offtake agreements with CNNC. It is expected that the agreement will enhance the long-term growth and development of the Langer Heinrich operation.
The mine currently has a design capacity of about 5.2 million pounds a year of uranium production, following a successful optimisation and debottlenecking. The project is expected to produce 5.7 million pounds during 2014.
Paladin said on Monday that settlement of the transaction would take place on July 23.
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