Australian uranium producer Paladin has secured a N$2.84 billion (US$150 million) syndicated debt facility ahead of the Langer Heinrich Mine (LHM) restart set for the first quarter of 2024.
The Debt Facility, providing Paladin with capital flexibility for the Langer Heinrich Mine (LHM) restart and allowing the company to progress its growth options, comprises a N$1.89 billion (US$100 million) amortizing term loan with a 5-year term and a N$950 million (US$50 million) revolving credit facility with a 3-year term, along with two options to extend by 12 months.
The loan providers are Nedbank Limited, through its Corporate and Investment Banking division (Nedbank CIB), and Macquarie Bank Limited, with Nedbank CIB acting as lead arranger and bookrunner.
Paladin CEO, Ian Purdy, said that production activities have commenced, with the first ore feed into the Langer Heinrich Mine processing plant on 20 January 2024 following the successful commissioning of the beneficiation circuit.
“After more than six years of care and maintenance, it is exceptionally pleasing to see production activities recommence at the Langer Heinrich Mine, with the first ore feed to the processing plant achieved in January,” he said.
The development comes as the LHM Restart Project is now over 93% complete, with final construction and ongoing commissioning activities continuing across the processing plant.
Moreover, the Company forecasts total project capital costs of approximately N$2.4 billion (US$125 million), previously (US$118 million), with all major construction costs committed, including additional contractor resourcing forecast during the commissioning phase.
“Executing a syndicated debt facility ahead of operations has been a key strategy for Paladin and will provide increased capital flexibility as we transition through ramp-up and progress to full production at Langer Heinrich. With a strong uranium price outlook and a return to production imminent, Paladin remains well positioned to generate strong returns for our stakeholders,” Purdy noted.
The CEO also revealed that the first commercial production is expected by the end of Q1 CY2024; however, lower contractor productivity over the Christmas/New Year period may result in a delay to early Q2 CY2024.
“There has been extensive collaboration between the commissioning team and the operations team, which has helped to offset reduced productivity,” he said.
Ongoing commissioning activities, coupled with the time required to build in-circuit metal inventory in the processing plant, are the current critical path items to successful project completion.
“Demobilization of the contractor workforce commenced with approximately 760 personnel on-site in January 2024, a significant reduction from the peak of 1,200,” the CEO said.
“Operational readiness activities nearing completion, with operational systems for safety, maintenance, and production completed.”
The restart of the Langer Heinrich Uranium mine is expected to create more than 300 jobs.
