Paladin Energy to Acquire Carley Bore Deposit from Energia

Paladin Energy Ltd. (TSX:PDN,ASX:PDN) announced that it has acquired the Carley Bore uranium deposit from Energia Minerals Ltd. in exchange for Paladin shares and AU$1.6 million cash.

As quoted in the press release:

Paladin will issue EMX 40 million Paladin fully paid shares and make a cash payment of A$1.6 million for the purchase of EMX’s EL 08/1645 and EL 08/1646, a 685km2 land package covering a rich sedimentary basin which hosts the Carley Bore uranium deposit (Carley Bore), in the north west region of Western Australia. Paladin will then issue EMX a further 5 million Paladin fully paid shares for the purchase of the adjacent northern EMX tenement, EL 08/1644, should EMX’s application for expenditure exemption on EL 08/1644 be approved.

This share payment is capped at a ceiling value of A$0.45/share and, should the Paladin share price be above this level at the time of settlement, the number of shares will be reduced accordingly. The acquisition also provides Paladin with a right of first refusal over the disposal of any interest in any future tenements granted to Energia that share a boundary with the existing Carley Bore tenements and certain specific tenements in the vicinity. Voluntary escrow restrictions will apply to 16 million shares for 12 months from the date of issue. Further, control mechanisms have been agreed to ensure an orderly sale of Paladin shares if and when EMX decides to do so.

Highlights of the acquisition:

• Acquisition of the Carley Bore uranium deposit in Western Australia consolidates control of an emerging uranium province around Paladin’s Manyingee Uranium Project in the Carnarvon Basin where preparation work for an In Situ Recovery (ISR) field leach trial (FLT) is being advanced.
• Logical and strategic acquisition expected to deliver operational synergies and lower capital costs for combined future development.
• Immediate focus for the new tenement areas will be on resource expansion work at Carley Bore and targeted regional exploration for new deposits

John Borshoff, managing director and CEO of Paladin, commented:

The current low uranium price and sustained sector weakness have created an opportunity to consolidate our portfolio in strategically important regions for the Company. We remain focused on recapitalizing our balance sheet, but can now pursue opportunities to enhance our development pipeline in a balanced and cost effective manner. This acquisition is certainly a game changer for us in terms of our Australian projects. With this land package, we have cornered a significant portion of the emerging Carnarvon Basin uranium province. This acquisition has the clear potential to improve the economics of a key development project by delivering valuable synergies in regional infrastructure.

Click here to read the full Paladin Energy Ltd. (TSX:PDN,ASX:PDN) press release.