Paladin Energy (Paladin or the Company) (ASX: PDN) (TSX: PDN) refers to its previous announcements regarding:
- the request by Électricité de France (EDF) to be granted additional security by Paladin in respect of the prepayment made by EDF under the Long Term Supply Contract (LTSC) (including its announcements dated 28 December 2016, 4 January 2017 and 16 May 2017); and
- the potential option in favour of CNNC Overseas Uranium Holding (CNNC).
Update on EDF Long Term Supply Contract
As previously announced, Paladin proposed additional security and Paladin and EDF appointed an independent expert to opine on whether the value of the additional security offered by Paladin was sufficient. The expert has today delivered its final report confirming the initial feedback (announced 16 May 2017) that the value of the additional security is insufficient.
Under the terms of the LTSC, the outstanding amount (being approximately US$277 million as of the date hereof) must now be repaid within 30 days. Paladin has proposed to EDF the terms of a standstill of Paladin’s payment obligation which terms EDF is reviewing. Paladin will update the market as material developments occur.