The combination will mean shareholders of both companies will benefit from an enhanced project development pipeline, with "multi-asset production" expected by 2029, and a diversified presence across leading uranium mining jurisdictions of Canada, Namibia and Australia, they said.
Paladin, which is listed on the Australian Securities Exchange (ASX), has a 75% ownership of the Langer Heinrich uranium mine in Namibia, which returned to commercial operation earlier this year for the first time since 2018. The company's portfolio of uranium exploration and development assets in Canada and Australia includes the Michelin project in Newfoundland and Labrador, which is at the preliminary economic assessment stage. Fission, listed on the Toronto Stock Exchange (TSX), is the 100% owner of the Patterson Lake South (PLS) high-grade uranium project in Saskatchewan, for which a feasibility study has highlighted the potential for a 10-year mine life with production of 9.1 million pounds U3O8 (3500 tU) per year.
Paladin will acquire 100% of the issued and outstanding shares of Fission by way of a court approved plan of arrangement under the Canada Business Corporation Act. On completion of the transaction, Fission shareholders will own 24.0% of Paladin, which will have a pro-forma market capitalisation of approximately USD3.5 billion, the companies said. Paladin has applied for listing of the Paladin Shares on the Toronto Stock Exchange, concurrent with completion of the transaction, so that Fission shareholders will receive TSX-listed Paladin shares.
Paladin CEO Ian Purdy said Fission is a "natural fit" for the company's portfolio. "The addition of PLS creates a leading Canadian development hub alongside Paladin's Michelin project, with exploration upside across all Canadian properties," he said. The transaction would also de-risk the development of PLS for Fission shareholders, underpinned by production from Langer Heinrich and Paladin's offtake contract book. "Paladin will bring the required investment to PLS in order to advance it towards production," he added.
Fission President and CEO Ross McElroy said the combination would create a world class diverse uranium producer, adding a class leading development project in a Tier 1 jurisdiction with the ability to expand production and cash flow profiles in the near term. "With commercial production at Langer Heinrich and further development milestones at PLS, 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," he added.
The combination will create "one of the largest amongst pure-play uranium companies" with pro-forma U3O8 mineral resources of 544 million pounds U3O8 and ore reserves of 157 mllion pounds across conventional open-pit and high-grade underground orebodies, with multi-asset production expected "by the end of the decade," the companies said.
The transaction is targeted to close in the third quarter of this year, subject to satisfaction of conditions.
