Uranium miner and developer Paladin Energy has been granted an exemption from Canada’s Non-Resident Ownership Policy (NROP) for its Patterson Lake South (PLS) uranium project in Saskatchewan.

The exemption allows Paladin, which is listed on the ASX and TSX, to maintain a 100% controlling interest in PLS as it moves toward commercial production.

The exemption was secured in connection with Paladin’s acquisition of Fission Uranium, which was completed in late December.

Under NROP, foreign companies are typically restricted from owning a controlling interest in commercially producing uranium projects unless they obtain a specific exemption from the Canadian government.

The exemption granted to Paladin follows a similar exemption previously obtained for its Michelin project in Labrador in June 2015.

In a statement, Paladin confirmed that the exemption was not the sole requirement for advancing the project, as the company continues to work towards securing all necessary approvals.

As part of the Canadian government’s clearance of the Fission acquisition under the Investment Canada Act in December, Paladin provided undertakings aligned with Canada’s national interests and its critical minerals strategy. This includes the appointment of a Canadian citizen-resident as an independent director to strengthen the board and the continued independence of Paladin’s senior executive team.

“The Minister for Energy and Natural Resources of Canada’s decision is a major step forward for Paladin as we move toward the development of our key uranium production assets in Canada,” said Paladin CEO Ian Purdy. 

“We are grateful to the Minister and Canadian officials for their thorough and timely approach in granting this exemption, which highlights the strong and developing relationship between Paladin and the government of Canada.”

Purdy stressed that Paladin’s commitment to the development of PLS was aligned with the Canadian and provincial governments’ goals and would bring substantial economic and social benefits to local communities. He further highlighted the company’s focus on securing the full range of approvals necessary for the project’s progression.

The acquisition of Fission also led to the cessation of all outside ownership and governance rights associated with Fission and its assets. Moreover, Paladin has agreed not to raise financing from sources in China or sell uranium produced from PLS to Chinese customers, except for sales to China General Nuclear Power Group (CGN) under the terms of an existing offtake agreement. The agreement with CGN now includes dilution provisions, as CGN no longer holds a significant stake in Fission following the acquisition.