• Paladin is offering an implied value of C$1.30 per Fission Share, or an implied equity value of C$1,140 million.
• The price is a 25.8% premium to Fission’s Friday close, and a 30% premium to the 20-day VWAP.
• Fission shareholders will own 24.0% of Paladin if the deal completes.
• Paladin has applied to list Paladin Shares on the TSX concurrent with closing of the transaction.
• The deal is targeted to close in the September 2024 quarter.

Paladin CEO Ian Purdy:

Fission is a natural fit for our portfolio with the shallow high-grade PLS project located in Canada’s Athabasca Basin. The addition of PLS creates a leading Canadian development hub alongside Paladin’s Michelin project, with exploration upside across all Canadian properties.

Paladin Energy has recently restarted production at its Langer Heinrich mine in Namibia. Now the company is looking to enhance its project pipeline by adding Fission Uranium’s flagship Patterson Lake South (PLS) project.

The deal gives Paladin what is describes as a “world-class production and growth pipeline”. The recently restarted Langer Heinrich mine in Namibia has a 17 year mine life and annual nameplate capacity of 6Mlbs U3O8.

The Feasibility Study released for the PLS project envisions a 10 year mine life with annual production of 9.1Mlbs U3O8. Paladin will be able to leverage LHM cashflows to fund the PLS development. PLS is expecting first production around 2029.

Paladin also says the deal will create a “new, leading Canadian development hub with two uranium projects, PLS and Michelin” referring to Paladin’s existing Michelin project in Canada.

Finally, Paladin believes the increased market capitalization and dual listing on the TSX will attract a broader investor base and increased research coverage.

Check out our Uranium Stock List.