PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 25, 2010) - Paladin Energy Ltd. (TSX:PDN)(ASX:PDN) ("Paladin", or the "Company") is pleased to announce that in accordance with the Kayelekera Mine (KM) project finance loan, the Completion Test will commence 1 November 2010.
The Lenders have been notified and the Independent Technical Consultants arrived at site today.
The Completion Test requires the Project to operate at a minimum of 90% design production for a continuous period of 90 days. It will include a number of specific performance parameters, including tests for mining, recovery, production, grade and milling.
Paladin has commenced the Completion Test based on the production levels achieved over the past month and confidence the Project can maintain nameplate production.
Once the Completion Test is achieved the interest margin on the Commercial Bank Facility portion of the outstanding KM project finance debt will reduce by 0.50% per annum and the loan becomes non-recourse to Paladin Energy Ltd.
This information is available on our website at www.paladinenergy.com.au
Caution Concerning Forward-Looking Information
Except for historical information contained in this news release, this news release contains "forward-looking statements" and "forward-looking information" within the meaning of securities laws of applicable jurisdictions. The forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the commencement of the Completion Test at Kayelekera and its effect on the applicable project finance facility. Assumptions upon which such forward-looking statements and forward-looking information are based include that the Completion Test will commence and be successfully completed as planned. Management believes these assumptions are reasonable. However, the forward-looking statements and forward-looking information involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Paladin and its officers, employees, agents or associates. Such risks, uncertainties and other factors include, but are not limited to: risks related to mining operations, including political risks and instability and risks related to international operations, actual results of current production and exploration activities, changes in project parameters as plans continue to be refined, as well as those factors discussed in the section entitled "Risk Factors" in Paladin's most recent Annual Information Form available under Paladin's profile on SEDAR at www.sedar.com. Although Paladin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Actual results, performance or achievements may vary materially from those suggested by such forward-looking statements and forward-looking information. Readers are cautioned not to place undue reliance on forward-looking statements and forward-looking information and Paladin assumes no obligation to update such information, except as required by applicable law.
ACN 061 681 098