Paladin up on project refinancing
UPDATE 1.35pm: Shares in Paladin continued their recent recovery after the uranium miner announced it had refinanced the debt on its Langer Heinrich and Kayelekera projects on more favourable terms.
The company said the new facility would provide significant cash flow benefits to both projects and put it in a much stronger financial position.
Under the terms of the new agreement, the annual principal repayments across both projects will be reduced from $US53.8 million a year to $US18.3 million per annum in calendar year 2014, a substantial reduction of $US35.5 million, with the first repayment not due until June 2014.
In calendar year 2015, annual principal repayments under the existing facilities compared to the new facility will be reduced by a further $US23.7 million.
The new finance facility increased amount, extension of term and a reduction in principal repayments from $US23.8 million per annum to $US18.3 million per annum.
Paladin has also secured a $US20 million working capital facility to provide additional financial flexibility.
Managing director and chief executive John Borshoff said the refinancing was another important step to strengthen the business, both operationally and at a corporate level.
Completing the refinancing during this period of depressed uranium prices and difficult market conditions is testament to the operational capability and financial robustness of Langer Heinrich," he said.
Paladin shares closed up 6.5 cents, or 13.13 per cent, at 56 cents.
