Mining Journal

"Namibian uranium producer Paladin Energy Ltd plans to undertake an institutional placement of up to 15% of its issued capital, worth about A$450 million (US$388 million), with part of the funds earmarked for consolidation opportunities.

The funding will “provide Paladin with the financial capacity to advance M&A and inorganic growth opportunities”, the firm said.
The ASX-listed company recently approved the US$71 million stage 3 expansion of its flagship Langer Heinrich uranium mine, to produce 5.2Mlb/y (2,359t/y) of U3O8 by September 2010. Funds from the institutional placement will also be used for this expansion.

The company also owns, or has an interest in, exploration projects in Australia, which will be driven closer to development with funds from the institutional placement.
Paladin said the price and terms of the offering would be determined after marketing effort, to be undertaken by RBC Capital Markets and UBS AG Australia acting as global joint lead placing agents."

My comment: Paladin was the Stock of the Year pick for 2009. The stock was up over 100% for us and I continue to hold Paladin as the management continues to execute on their expansion plans. They are now cashing up for mergers which is consistent with the managements desire to create a global uranium mining house.

John Polomny
The Real Deal