MinRes to put lithium mine on ice, to cut 300 jobs
The company will put its Bald Hill lithium mine in Western Australia under care and maintenance starting this week.
Australian miner Paladin Energy said on Monday it had entered into an agreement to buy Canada’s Fission Uranium Corp for an implied equity value of C$1.14 billion ($833.03 million).
The deal comes at a time when prices for uranium, used to fuel most of the world’s nuclear reactors supplying 16% of the global energy, has increased significantly last year due to rising demand and limited supply.
Under the offer, Fission shareholders will receive 0.1076 shares of Paladin for every Fission share held, the company said, adding the deal implies a value of C$1.30 per share for the Canadian miner, a 25.8% premium to its closing price of C$1.03 on Friday.
Paladin has applied for listing its stock on the Toronto Stock Exchange (TSX), where Fission shareholders will own 24% Paladin shares, the company said.
Fission’s board has recommended shareholders’ vote in favour of the transaction, Paladin added.
“This arrangement significantly de-risks the mine-building financing at Patterson Lake South projects (PLS), with the cash flow generation at Langer Heinrich and a strong balance sheet creating an opportunity to significantly fund the development of PLS,” Fission president and CEO Ross McElroy said.
($1 = 1.3685 Canadian dollars)
(By Sneha Kumar; Editing by Subhranshu Sahu and Rashmi Aich)
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