Paladin Energy (ASX:PDN) is running a $300 million equity raising to bolster the development of its Patterson Lake South Project in the Athabasca Basin of Saskatchewan towards a final investment decision.
The fully underwritten equity raising comprises a placement run through the Australian Securities Exchange (ASX), a bought deal private placement on the Toronto Stock Exchange (TSX), as well as a treasury share sale to divest the shares acquired on the acquisition of Fission Uranium Corp.
The initial placement intends to raise $231 million through the issue of 31.9 million shares at a price of $7.25 per share, representing an 8% discount to the last closing price of $7.88 and a 8.1% discount to the five-day volume weighted average price (VWAP).
Meanwhile, the company has involved Canaccord Genuity Corp with its bought deal, issuing the firm 4.5 million shares at $6.66 per share to return C$30 million ($32.64 million).
Concurrent with these deals, the company is selling the shares held by its subsidiary Paladin Canada for an additional $36 million.
Paladin, which has a market capitalisation of $3.14 billion, is selling 4.96 million shares acquired through the purchase of Fission late last year, which the company is required to divest within 12 months of the acquisition as stated under the Corporations Act 2001.
Canaccord Genuity Corp is the sole underwriter and bookrunner to the bought deal, while Canaccord Genuity Limited and Macquarie Capital are acting as joint lead managers, underwriters, and bookrunners to the placement and the treasury share sale.
Following the completion of these offerings, Paladin will also run a share purchase plan for existing shareholders to subscribe for up to $30,000 worth of shares.
The company intends to raise $20 million through shares issued at an offer price of $7.25.
Paladin holds the right to close the plan if demand exceeds the intended raising, otherwise boosting the total earnings to meet oversubscription demand.
Details about the plan are expected to be made available on or around 25 September.
Paladin Energy is a uranium explorer and producer holding a portfolio of assets across Australia and Canada.
Write to Maddison Elliott at Mining.com.au
Images: Paladin Energy
