Paladin accepts A$100m after SPP draws seven times initial target
Uranium miner Paladin Energy said on Thursday that it would accept A$100-million from a heavily oversubscribed share purchase plan (SPP), after receiving applications worth more than A$138-million - nearly seven times its initial target.
Paladin, which had initially sought to raise A$20-million through the non-underwritten offer, said it increased the size of the SPP “in recognition of the ongoing support from retail shareholders".
Shares were issued at A$7.25 apiece, matching the price set in a recent A$300-million institutional placement.
The funds raised through the SPP will go toward working capital and future exploration, while the institutional proceeds will help advance the Patterson Lake South (PLS) uranium project in Canada toward a final investment decision and support the ramp-up of the Langer Heinrich mine in Namibia to full operations by 2027.
Paladin said the SPP was scaled back on a pro-rata basis, with applications capped at A$30 000 per shareholder in accordance with offer terms. The company will issue about 13.8-million new shares on October 16, with trading on the ASX expected to begin the following day.
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