Paladin Energy to acquire
Fission Uranium
Paladin Energy to acquire Fission Uranium
Paladin Energy Limited (ASX:PDN OTCQX:PALAF) (“Paladin”) and Fission Uranium Corp. (TSX:FCU OTCQX:FCUUF FSE:2FU) (“Fission”) have entered into a definitive arrangement agreement (the “Agreement”), pursuant to which Paladin will acquire 100% of the issued and outstanding shares of Fission (“Fission Shares”) by way of a court approved plan of arrangement under Canada Business Corporation Act (the “Transaction”)
Transaction Highlights
- All scrip acquisition of Fission Uranium Corp by Paladin Energy via a plan of arrangement
- Transaction consideration represents a 30% premium to Fission shareholders based on the 20-day Volume Weighted Average Price (‘VWAP’)
- Post closing Paladin shareholders will own ~76% of the combined company and Fission shareholders will own ~24%
- Transaction supported by Fission Board of Directors
- No Paladin shareholder approval required
- The Transaction is targeted to close in the September 2024 quarter (subject to satisfaction of all conditions under the Agreement)
- Paladin has applied to list on the TSX concurrent with closing of the Transaction and will issue TSX listed shares to Fission shareholders under the Transaction
Strategic Rationale
- World-class production and growth pipeline
- Creation of a leading Canadian development hub
- Globally significant uranium resource
- Enhanced exposure to highly attractive uranium market
- Increased international capital markets presence
- Shared commitment to a sustainable future
The combination of Paladin and Fission will create a clean energy leader and will deliver the following benefits to both Paladin and Fission shareholders:
- Enhanced project development pipeline.
- Multi-asset production expected by 2029.
- Diversified presence across leading uranium mining jurisdictions of Canada, Namibia and Australia.
- Increased exposure to highly attractive long term uranium fundamentals.
- Increased scale and global profile of Paladin with TSX listing.
The Transaction will also deliver several direct benefits to Fission shareholders:
- Attractive 30% premium to Fission’s 20-Day VWAP and the ability to participate in the upside of Paladin.
- Meaningful 23% ownership in a global, multi-asset uranium company with exposure to the producing LHM.
- Continued exposure to the Patterson Lake South project’s (“PLS”) future operational profile and exploration upside.
- De-risk Fission’s PLS development funding, underpinned by LHM production and customer offtake contract book.
- Opportunity to retain TSX-listed shares in a leading ASX100 growth-focused uranium company providing increased trading liquidity and an enhanced capital markets presence.