S&P/ASX 200 Index (ASX: XJO) uranium stock Paladin Energy Ltd (ASX: PDN) is marching higher today.
Paladin shares closed Friday trading for $6.42. In morning trade on Monday, shares just leapt to $6.61, up 3.0%. After some likely profit-taking, shares are changing hands for $6.47 apiece at the time of writing, up 0.8%.
For some context, the ASX 200 is up 0.6% at this same time.
Here's what's happening.
ASX 200 uranium stock greenlit by Canada
The Paladin share price is in the green after the ASX 200 uranium stock reported that the Canadian Minister for Energy and Natural Resources granted its Patterson Lake South Project (PLS) an exemption from the Non-Resident Ownership Policy (NROP) in the Uranium Mining Sector.
The exemption allows Paladin to maintain its 100% controlling interest in the uranium project throughout its commercial production.
Management noted that the NROP exemption does not constitute any other form of regulatory approval for the Patterson Lake South Project. Paladin received a similar NROP exemption for its Michelin Project, located in the Canadian province of Labrador, in June 2015.
Paladin said it received the exemption with the company providing undertakings favourable to Canada's national interests and the long term implementation of its critical minerals strategy.
What did management say?
Commenting on the exemption helping to boost the ASX 200 uranium stock today, Paladin CEO Ian Purdy said, "We are delighted to receive the decision of the Minister for Energy and Natural Resources of Canada as it takes us another step forward towards developing major uranium production assets in Canada, with NROP exemptions now granted for both the PLS and Michelin projects."
Purdy added:
We thank the Minister and Canadian officials for their timely and thorough approach in granting this exemption, which is testament to the strong relationships developing between Paladin and the Government of Canada.
We are in lock-step with the Canadian and Provincial Governments on progressing the development of PLS for the benefit of the Company, the nation and the communities for whom it can deliver a range of economic and social benefits.
Our team in Canada is now firmly focused on undertaking and securing the full range of approvals required for the PLS project.
Our goal is to develop PLS so that it supports Paladin's multi-decade production strategy and makes a strategic contribution to meeting global demand in North America, Europe and Japan for the uranium needed to produce baseload nuclear power.
With today's intraday lift factored in, the Paladin Energy share price remains down 47% in a year.
Longer term, the ASX 200 uranium stock is up 1,547% over five years.
