Paladin executes US$150 million facility to revive LHM

Paladin Energy (ASX:PDN) has executed a US$150 million syndicated debt facility as it restarts operations at its Langer Heinrich uranium mine (LHM) in Namibia, Africa. 

The $3.65 billion market capitalisation company says it executed the debt facility on 24 January 2024 alongside lending institutions Nedbank, acting through its corporate and investment banking division (Nedbank CIB), and Macquarie Bank. 

The debt facility comprises a US$100 million amortising term loan with a 5-year term and a US$50 million revolving credit facility with a 3-year term. The latter comes with 2 options to extend the arrangement by 12 months.

Nedbank CIB is acting as lead arranger and bookrunner to the debt facility. 

Paladin Energy Chief Executive Officer (CEO) Ian Purdy says the debt facility will provide the company with capital flexibility while it progresses to full production at Langer Heinrich amid a strong uranium price outlook. 

“Executing a syndicated debt facility ahead of operations has been a key strategy for Paladin and reflects our commitment to prudent capital management, which benefits our company and shareholders.”

Paladin reports that the debt facility comes as it progresses its growth options, including its Michelin Exploration Project in Canada. 

The company notes that the execution of the debt facility marks the completion of a ‘comprehensive’ syndication process, including LHM site visits by independent technical and environmental experts and financier teams, corporate due diligence, and an international syndication process. 

As of 31 December 2023, Paladin had US$61.6 million cash and cash equivalents at hand with no corporate debt, providing funding for the completion of the LHM Project and the restart of operations.

The LHM Project has over 10 years of proven operations performance and is majority-owned by Paladin (75%).  

Paladin Energy is a uranium company that owns a ‘large’ global portfolio of uranium exploration and development assets.

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Images: Paladin Energy
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.