Published on Friday December 17 2010
Paladin Energy Ltd ("Paladin") (TSX:PDN)(ASX:PDN)-
Is pleased to announce that it has initiated its uranium business in Canada and entered into a Definitive Agreement for the purchase of the uranium assets of
Aurora Energy Resources Inc.
(67.12Mlb Measured and Indicated and 36.08Mlb Inferred Resources of U3O8) as well as the Jacques Lake, Rainbow, Nash, Inda and Gear deposits and has secured the most prospective ground within the CMB.NI 43-101 compliant U3O8 resources have been defined across all the deposits as follows
83.8Mlb U3O8 Measured and Indicated Mineral Resources (40.2Mt ore at 0.09%)
53.0Mlb U3O8 Inferred Mineral Resources
(29.0Mt ore at 0.08%)
The consideration for 100% ownership amounts to C$260.87M via the issuance of 52,097,937 shares in Paladin.
This values the current resources at US$1.90/lb.
Paladin considers the CMB to be one of the few remaining, underexplored uranium districts globally and this acquisition not only provides Paladin with a noteworthy mid-term development asset but also offers an excellent opportunity for both significant new discoveries and expansions of the existing deposits. This highly strategic transaction fulfils Paladin's long held ambition to expand its footprint into Canada, a leading country in uranium mining, both in terms of resources and its stable political and business environment, providing the Company with an important new platform from which to plan its continued growth.
With this acquisition, Paladin's global uranium portfolio increases appreciably and, with strong potential for additional uranium resource discovery to complement the existing resource base, provides a genuine development opportunity within the forthcoming decade.
Current economic models and development plans will be revised with emphasis placed on resource expansion and new target testing. Aurora, via Fronteer, has significantly advanced these resources and Paladin is confident it can apply its considerable international expertise in exploration and project development to move them towards production. Aurora has also developed "best in class" community and stakeholder relations and communication programmes and Paladin will maintain and continue this high quality of work as a matter of priority.
The resources at Michelin and Jacques Lake have grown substantially during periods of exploration. We intend to advance these assets and will commit to regional target identification and testing upon resolution of the current uranium mining moratorium, which was put in place by the Nunatsiavut Government to provide the necessary time to complete a Land Use Plan and Environmental Protection legislation, both on track for completion by March 2011.
The goal will be to advance towards a definitive economic study and district development plan once a sufficient resource base has been defined thus benefiting Paladin shareholders, our customers and the stakeholders of Nunatsiavut and Newfoundland and Labrador. The Board and I welcome our expansion into Canada, a major uranium producing region which any company genuinely aspiring to be a Tier 1 producer must have in its asset portfolio".
Mark O'Dea, President and CEO of Fronteer Gold, today said: "Paladin is an experienced and well-financed global uranium mine operator and developer, and is well positioned to advance Aurora's uranium assets. With this world-class project added to their development pipeline, we believe Paladin will have one of steepest growth profiles in the uranium industry. This transaction gives us the option of maintaining exposure to the uranium price through a high quality, diversified uranium producer".
Completion of the transaction is subject to certain customary conditions, including the receipt of all necessary government and regulatory approvals, including the approval of the TSX and third party consents and is expected to close in February 2011. Cormark Securities Inc. of Toronto acted as Paladin's financial advisor on this transaction. The shares to be issued to Fronteer will be subject to a four-month hold period under Canadian securities laws.
In addition, Fronteer will enter into an agreement at closing that sets out procedures designed to ensure that any disposition of shares by Fronteer will occur in an orderly fashion to as wide a distribution as possible of institutional investors.
Click Image To Access Uranium Stocks Australia
No comments:
Post a Comment