Paladin Energy Limited, an Australian company, will acquire Canadian uranium project developer, Fission Uranium Corp. Both companies claim that this merger will create a “globally significant uranium company” listed on the Australian and Canadian stock exchanges, propelling Fission’s Patterson Lake South project into production.
With this combination, the shareholders of both companies will benefit from an enhanced project development portfolio. “Multi-asset production” is expected by 2029, with diversified presence in the major uranium mining jurisdictions of Canada, Namibia and Australia.
The business of the new uranium company
Paladin Energy Limited , which is listed on the Australian Securities Exchange (ASX), owns 75% of the Langer Heinrich uranium mine in Namibia, which returned to commercial operation this year after being dormant since 2018. Its assets in Canada and Australia include the Michelin project in Newfoundland and Labrador, currently in the preliminary economic assessment phase.
For its part,
Fission Uranium Corp
listed on the Toronto Stock Exchange (TSX), owns 100% of the Patterson Lake South (PLS) uranium project in Saskatchewan, which has a feasibility study suggesting a 10-year life with an annual production of 9.1 million pounds of U3O8.
Importantly, Paladin will acquire 100% of the issued and outstanding shares of Fission through a court-approved agreement under the Canada Business Corporations Act. Following the transaction, Fission shareholders will own 24% of Paladin, which will have a pro forma market capitalization of approximately $3.5 billion. Paladin has applied to list its shares on the Toronto Stock Exchange so that Fission shareholders will receive TSX-listed shares.
Management’s statements and future prospects
Ian Purdy, CEO of Paladin, said Fission is a “natural fit” for the company’s portfolio. The integration of PLS together with the Michelin project at Paladin will create a leading development center in Canada, with exploration opportunities across all Canadian properties. This transaction will also reduce the risk of PLS development for Fission shareholders, backed by Langer Heinrich’s production and Paladin’s book of contracts.
Likewise, Ross McElroy, Fission’s president and CEO, noted that the combination will create a world-class, diverse uranium producer, adding a leading development project in a Tier 1 jurisdiction. With commercial production at Langer Heinrich and new development milestones at PLS, this opportunity will generate a diversified uranium-only company. uranium with current production and a broad portfolio of near- and mid-term assets available to investors.
The merger will result in “one of the largest uranium-only companies,” with pro forma mineral resources of 544 million pounds of U3O8 and ore reserves of 157 million pounds in conventional open-pit and high-grade subway deposits. The transaction is expected to close in the third quarter of this year, subject to the satisfaction of conditions.
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Source: world-nuclear-news
Photo: Shutterstock
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