Paladin secures sales contract

Shares in uranium explorer Paladin Resources Ltd have risen 10.8 per cent today following news the company has secured its first sales contract for a portion of its yellowcake production from the Langer Heinrich uranium mining operation in Namibia.

At noon, the company's share price was up 25 cents to $2.56.

Mine commissioning is scheduled for September 2006.

The sales contract - with a major unnamed US utility - is for the purchase of 2.1 million pounds of yellowcake for delivery between 2007 and 2010.

The company has advised pricing will be market related to be determined at the time of each delivery with escalating floor and ceiling price components.

The uranium miner believes the lack of new companies entering the uranium market in the past 25 years reflects a period of dismal outlook and a uranium mining industry essentially in retreat.

Paladin's second uranium project, Kayelekera in Malawi, is expected to go into production in 2008.