The Paladin Energy Ltd (ASX: PDN) share price opened 3.24% higher at 95.5 cents on Wednesday amid news of an increased stake in a Canadian uranium project.
The uranium developer announced today that it has raised its stake in the Michelin advanced exploration project from 75% to 100% through its subsidiary Aurora Energy Limited.
The Michelin project is located in Labrador, Canada and was formerly a joint venture project.
Let's dig into the details.
Paladin takes full ownership of Michelin
Paladin said Michelin is located in a premier mining jurisdiction.
More than US$75 million of in-ground exploration work has already been undertaken.
With its joint venture partners now out of the picture, Paladin is now determining a pathway forward for the project. The company expects to update investors in the first half of next year.
The company said:
Paladin has recently completed an extensive geological review including an on-ground review of historic data and an airborne gravity-gradiometry survey.
The Company has also re-opened an office in St John's and has successfully recruited a highly experienced in-country exploration team.
Paladin Energy share price snapshot
This ASX uranium share has been riding the wave of optimism surrounding nuclear power and its role in a decarbonised world.
Many countries are building small reactors to contribute to their energy supplies.
Increased interest in nuclear energy and constrained global supply of uranium has pushed the commodity price 40% higher over the past year.
Uranium closed overnight at US$69 per pound, down 5.15%.
The Paladin Energy share price has risen 18.75% over the past year and 46% over the past six months.
Several brokers are positive on uranium shares and Paladin Energy in particular.
