Subiaco-based Paladin Energy Ltd has secured US$167 million ($185 million) in project finance for the remaining funding component of its Kayelekera Uranium Project in Malawi.
The market responded well to the news, lifting Paladin shares by 70 cents today, or 13 per cent, to close at $6.00 each.
The initial development funding for the project was raised as a component of the US$250 million ($276 million)convertible bonds issued on December 15, 2006 with an underlying coupon rate of 4.5 per cent, maturing December 15, 2011 and a conversion price of US$7.685 ($8.51) per share.
Paladin has received credit committee approved offers of financing totalling US$167 million ($185 million), consisting of a 7 year project finance facility of US$145 million ($160 million), a standby cost overrun facility of US$12 million ($13.2 million) and a performance bond facility of US$10 million ($11 million).
The facilities are being provided by Société Générale Corporate and Investment Banking (as intercreditor agent and commercial lender), Nedbank Capital a division of Nedbank Limited (ECIC lender) and The Standard Bank of South Africa Ltd (as ECIC facility agent and lender).
Drawdown on the financing is subject to completion of legal documentation and fulfilment of other conditions precedent usual for this type of funding, including approval for an export credit guarantee from The Export Credit Insurance Corporation (ECIC), South Africa's statutory export credit and foreign investment insurance provider.
