Paladin Energy Ltd PALAF

Energy

Paladin Energy Ltd is an Australia-based independent uranium producer with a 75% ownership of the world-class long life Langer Heinrich Mine (LHM) located in Namibia. The Company also owns a portfolio of uranium exploration and development assets in Canada and Australia. Its segments include Exploration, Namibia and Australia. The LHM is located in central western Namibia approximately 80 kilometers (km) east of Swakopmund and 85 km northeast of the Walvis Bay major deepwater harbor. Its exploration projects include Michelin, Manyingee and Mount Isa. The Company, through its subsidiary Aurora Energy Ltd, holds a 100% interest in over 98,320 hectares of mineral exploration licenses. These are located within the Central Mineral Belt of Labrador, Canada. It has a 100% interest in the Manyingee Project. This project is a sandstone hosted uranium project consisting of 41 Mlb across two deposits. It wholly-owns a project comprised of three promising uranium exploration sites in Queensland.

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Paladin Energy Ltd

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Post by crazytownon Oct 26, 2012 10:22am

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Post# 20526880

Re: Re:Contract

From Paladin news release, hope it helps.

Long Term Off-take Contract with a US$200M Prepayment
Paladin is pleased to advise that it has entered into an important, long-term off-take contract (LTC) which
underscores the operational capability the Company has attained in the uranium supply sector.
Paladin has signed a milestone 6 year off-take agreement with a major utility to deliver a total of 13.73Mlb
U3O8 in the period from 2019 to 2024 incorporating a prepayment of US$200M as its key feature. Delivery
will be from its current African mining operations or a project yet to be developed from the Company’s
significant existing project pipeline or a combination of these options. Uranium delivered under the LTC will
be sold at market prices prevailing at the time of delivery bounded by escalating floor and ceiling prices.
The prepayment of US$200M will be made to Paladin, in respect of part of the future product deliveries. To
secure Paladin’s obligation to deliver product representing the prepayment amount, the utility will hold
security over 60.1% of Paladin’s Michelin project in Canada. The percentage of Michelin secured will be
reduced by joint agreement as the value of that project is enhanced by Paladin’s ongoing work. The
Michelin security can also be replaced by other appropriate security if required.
Subject to formalities to be put in place between Paladin and the utility, expected to occur in September,
such as required registration of the security documentation (which formal documentation is in agreed form)
the US$200M prepayment will be made in tranches to be completed by no later than 31 January 2013.
The prepayment will be applied to repayment of the balance of the March 2013 convertible notes (US$134M)
with the remainder retained for balance sheet strength as working capital.
The specific nature of the LTC, leveraging off forward production, is in itself a strong indication of the
uranium industry’s future supply challenges and fully endorses Paladin’s development vision to date.
The Company will now re-evaluate its strategic options in the light of this major achievement.