The Paladin Energy Ltd (ASX: PDN) share price could see renewed interest after the ASX-listed uranium miner announced the successful completion of a $300 million equity raising, with strong demand from institutional investors and a further $20 million share purchase plan for eligible retail shareholders.
What did Paladin Energy report?
- Completed fully underwritten equity raising, securing approximately A$300 million before costs
- ASX institutional placement raised ~A$231 million at A$7.25 per share
- Canadian "bought deal" private placement raised ~A$33 million at C$6.66 per share
- Treasury share sale of ~A$36 million
- Plans for a non-underwritten share purchase plan (SPP) targeting up to a further A$20 million from eligible shareholders
- Funds primarily allocated to advance the Patterson Lake South (PLS) Project and ramp up Langer Heinrich Mine (LHM)
What else do investors need to know?
The equity raising attracted strong support from both existing and new institutional investors in Australia, Canada and beyond. The new shares issued will rank equally with existing ordinary shares and will be settled towards the end of September 2025.
Eligible Paladin shareholders in Australia and New Zealand have the opportunity to apply for up to A$30,000 in new shares through the SPP, at the placement price and without brokerage or transaction costs. The SPP opens 25 September and may be scaled back if demand exceeds A$20 million.
Proceeds from the capital raising will enhance Paladin's balance sheet flexibility as it progresses its PLS Project towards a final investment decision, alongside the ongoing LHM ramp-up, which aims for full mining and processing operations by FY2027.
What did Paladin Energy management say?
Commenting on the development, Paul Hemburrow, Paladin Managing Director and Chief Executive Officer, said:
We are delighted with the support we have received for the equity raising from high-quality existing and new institutional investors located in Australia, Canada and internationally and I would like to thank them for their support. The funds secured will provide us with the balance sheet flexibility to advance the PLS Project towards a FID while simultaneously completing the ramp-up of operations at the LHM.
What's next for Paladin Energy?
Looking ahead, Paladin plans to use the proceeds of the equity raising to push the PLS Project in Canada towards a final investment decision. Management will also focus on completing the ramp-up of the Langer Heinrich Mine in Namibia, targeting full operations by FY2027.
The company will also progress the retail share purchase plan, which opens later in September, providing eligible shareholders an additional opportunity to participate in Paladin's growth plans.
Paladin Energy share price snapshot
Paladin Energy shares are flat for the year to date, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8%.
