Wednesday, August 15, 2012

Paladin Energy Signs $200m Uranium Offtake Contract

Published on Wednesday August 15 2012 (AEST)  

Paladin Energy has signed a massive US$200 million long term off-take contract for its Uranium. According to the company it has signed a six year off-take agreement with an unnamed "major utility" to provide 13.73 million pounds of uranium from 2019 through to 2024. 

 It will supply the uranium from its current African mining operations or its upcoming projects. All of the "uranium delivered under the long term contract will be sold at market prices prevailing at the time of delivery bounded by escalating floor and ceiling prices," Paladin says. 

 As part of the agreement, the unnamed utility will hold security over 60.1% of Paladin's Michelin project in Canada. 

The prepayment of the US$200 million will be applied to the repayment of US$ 134 million worth of convertible notes, with the remainder held in the balance sheet as working capital. Paladin "will now re-evaluate its strategic options in the light of this major achievement"

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