Paladin in trading halt: Malawi mine temporary closes

Uranium miner Paladin Energy Ltd has halted trading in its shares as it prepared to announce an update on its strategic initiatives to reduce its debt.

In a statement to the Australian Securities Exchange, Paladin requested the halt until August 5 at the latest.

The reports indicate that the company plans to undertake capital raising for up to US$75 million via institutional placement of shares for up to 15% of its issued capital.

This development comes when Paladin’s Malawi mine in the northern border district of Karonga has been temporarily shut down.

Paladin Africa boss Greg Walker: Paladin hcannot stop mining in Malawi
Paladin Africa boss Greg Walker: Trading halt

Paladin General Manager Greg Walker confirmed to Nyasa Times on the shutdown but said the company is “conducting maintenance training”.

However, Walker did not talk about his parent company Paladin Energy  entering a trading halt.

Asked for comment Ahmed Dassu, the democracy campaigner and a business man of some substance in UK and Namibia said: “The halt in share trading is a significant development which should worry us all because it means that Paladin despite all its previous optimistic pronouncements, continues to have to raise additional funding to be operational.

“And what we should be even more concerned about for the next few days is that the raising of the $75 million which Paladin wants to raise, is subject to the approval of the regulatory authorities in Australia and Canada. What happens if the regulatory authorities withhold approval? And even if approval is granted what happens when the  $75 million it borrows runs out before the world commodity price recovers?”

Paladin believes that the strategic value of its flagship asset would not be reflected in the offer price due to the depressed spot uranium price of around US$35.50 per pound.

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