Australia’s uranium miner Paladin Energy Limited (ASX: PDN) (OTCQX: PALAF) will be spending a considerable amount of money to extend its operations into Canada’s rich Athabasca Basin.
This will be made possible through the C$1.1 billion acquisition of Saskatchewan’s Fission Uranium Corp. (TSX: FCU) and its flagship Patterson Lake South (PLS) operation.
It sits on the eastern side of the Basin, right next to the prolific Arrow deposit under development by NexGen Energy Ltd. (TSX: NXE). The mine is also situated southeast of a considerable joint venture land package held by ATHA Energy Corp. (TSX-V: SASK) (OTCQB: SASKF) (FRA: X5U) and Stallion Uranium Corp. (TSX-V: STUD).
One of the PLS project’s most notable qualities is the shallow depth of its resources. The site’s Triple R deposit sits merely 50 metres below the surface while Rook I’s Arrow, for example, is being developed at a depth of about 350 metres. This convenient accessibility is a significant attribute.
Paladin will still need a series of approvals for PLS before anticipated production in 2029. The deal, which will result in Fission shareholders owning 24 per cent of augmented Paladin, should close in Q3.
“Fission is a natural fit for our portfolio with the shallow high-grade PLS project located in Canada’s Athabasca Basin,” Paladin chief executive Ian Purdy said.
In conjunction with the pending transaction, Paladin has now applied to list its shares on the Toronto Stock Exchange.
$PDN.AX 🇦🇺Paladin Energy ($2.7bn USD mkt cap) has announced plans to acquire Canadian developer $FCU.TO 🇨🇦Fission Uranium ($730m). #uranium
Paladin is offering a 26% premium to Friday's closing price.
CEO Ian Purdy makes the case for the deal to shareholders: pic.twitter.com/RjwH1hVAoo
— Green Stocks Research (@GreenStocksRes) June 24, 2024
Read more: ATHA Energy employs machine learning to pinpoint Athabasca Basin uranium targets
Read more: ATHA Energy expands into new Canadian territory with 2024 exploration program
Production restarts at Langer Heinrich
Prior to announcing the major takeover, Paladin restarted yellowcake production at Namibia’s Langer Heinrich mine. The miner shut down the operation for six years before bull market conditions prompted the company to get it back into action.
“With commercial production at Langer Heinrich and further development milestones at PLS,” Fission President Ross McElroy said, “this opportunity will create a diverse pureplay uranium company with current production and a deep pipeline of near and mid-term assets available to investors.”
Paladin may be new to the Athabasca Basin but it isn’t new to Canada. The ASX-listed miner is currently developing the Michelin project: an advanced-stage exploration asset in Labrador spanning nearly 100,000 hectares.
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rowan@mugglehead.com
