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Paladin looks to raise $205m

Paladin Energy has announced a $205 million capital raising to recapitalise the company and fund it through to at least June 2016.

The raising will comprise a $61 million placement to Singapore-based HOPU Clean Energy priced at 42 cents a share and an underwritten one-for-two rights issue priced at a discounted 26 cents a share.

HOPU, which will underwrite the rights issue, will take a 13-15 per cent stake in Paladin, depending on acceptances and the company's senior managing director Wendong Zhang will take a seat at the company's board.

The uranium miner will use the funds to settle its convertible bond issue, which expire in November next year.

Paladin managing director John Borshoff said the recapitalisation package would allow Paladin to significantly de-risk its balance sheet and enhance its future funding flexibility.

"We look forward to welcoming HOPU to the Paladin share register as a long-term, strategic investment partner with financial capacity," he said.

"HOPU's investment demonstrates its confidence in the uranium industry and its understanding of Paladin's unique positioning in the uranium sector.

"It also increases Paladin's funding options going forward."

Paladin also reiterated full-year production guidance of 5.4 to 5.8 million pounds and said it was in a strong position to meet its long term C1 production cost target of $US20 a pound.

"The initiatives announced today are occurring at an opportune time as the uranium market is clearly recovering from its post Fukushima malaise with Paladin well situated to benefit from any upturn," the company said in a statement.

"Uranium spot price recovery in recent months from a low of $US28 a pound to a recent high of $US44 a pound indicates both a tightness in supply and the effects of possible realignment of some supply sources due to negative geopolitical developments."

Paladin said it believed uranium was set for a long period of price strength with China as a nuclear growth leader and Japan bringing its nuclear power program back online following the Fukushima disaster in 2011.

Paladin operates the Langer Heinrich uranium mine in Namibia.

Shares in Paladin are in a trading halt, having last changed hands for 38 cents.