- Paladin Energy (OTC:PALAF) has entered into an agreement to acquire Fission Uranium (TSX:FCU) in a transaction valued at C$1.1 billion
- Fission shareholders will receive 0.1076 shares of Paladin for every Fission share for an implied valuation of $1.30 per Fission share
- After the closing of the transaction, Fission shareholders will own 24 per cent of Paladin
- Shares of Paladin Energy are down 6.36 per cent to US$8.25 as of 12:33 pm ET, while Fission Uranium shares are up 15.05 per cent to C$1.19 as of 12:37 pm ET
Paladin Energy (OTC:PALAF) has entered into an agreement to acquire Fission Uranium (TSX:FCU) in a transaction valued at C$1.1 billion.
In a news release, it was revealed that Fission shareholders will receive 0.1076 shares of Paladin for every Fission share for an implied valuation of $1.30 per Fission share.
After the closing of the transaction, Fission shareholders will own 24 per cent of Paladin.
“The acquisition of Fission, along with the successful restart of our Langer Heinrich Mine, is another step in our strategy to diversify and grow into a global uranium leader across the top uranium mining jurisdictions of Canada, Namibia and Australia,” Ian Purdy, CEO of Paladin Energy, said in a statement.
Paladin Energy will also apply to list its shares on the Toronto Stock Exchange in tandem with the closing of the transaction.
“This arrangement significantly de-risks the mine-building financing at Patterson Lake South projects (PLS), with the cash flow generation at Langer Heinrich and a strong balance sheet creating an opportunity to significantly fund the development of PLS,” Uraniu, said in a statement.
As a combined entity, Paladin Energy and Fission Uranium aim to deliver benefits to its shareholders, including:
- An enhanced project development pipeline
- Multi-asset production expected by 2029
- A diversified presence across leading uranium mining jurisdictions of Canada, Namibia and Australia
- Increased exposure to highly attractive long-term uranium fundamentals
Fission Uranium is a Canadian uranium project developer and 100 per cent owner of the Patterson Lake South uranium property, which is a high-grade uranium mine and mill in the Athabasca Basin in Saskatchewan.
Paladin Energy is a uranium producer with a 75 per cent ownership of the Langer Heinrich Mine in Namibia. Paladin also owns a portfolio of uranium exploration and development assets in Canada and Australia.
Shares of Paladin Energy (OTC:PALAF) are down 6.36 per cent to US$8.25 as of 12:33 pm ET, while Fission Uranium (TSX:FCU) shares are up 15.05 per cent to C$1.19 as of 12:37 pm ET.
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