Paladin Energy Ltd
TSX : PDN
ASX : PDN

Paladin Energy Ltd

March 11, 2008 13:20 ET

Paladin Energy Ltd Announces Settlement of Convertible Bond Issue of US$325M

PERTH, WESTERN AUSTRALIA--(Marketwire - March 11, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Paladin Energy Limited ("Paladin" or the "Company")(TSX:PDN)(ASX:PDN) is pleased to report the completion of its previously announced issue of US$325M of 5% convertible bonds due March 11, 2013 (see Paladin news release of February 20, 2008.)

Citigroup Global Markets Limited and UBS AG, Australia Branch acted as Joint Lead Bookrunners and Joint Lead Managers, with UBS also acting as Sole Global Co-ordinator. Azure Capital acted as corporate adviser to Paladin.

The proceeds from the convertible bond issue will be utilised to fund further growth as follows:

- approximately US$50M to further advance the Langer Heinrich expansion project (Stage II);

- approximately US$100-120M to fund mining development, expansions and to support ongoing M&A activities as they arise in the next 12 to 18 months. This will include committing funds to Langer Heinrich to further increase production beyond the proposed Stage II expansion and, in conjunction with Cameco Corporation, to evaluating the recently awarded Angela and Pamela uranium deposits in Australia's Northern Territory;

- approximately US$50-70M for ongoing exploration and business development;

- approximately US$65-75M on Paladin's marketing arm. Paladin will develop innovative commercial arrangements to take advantage of the dynamic changes in the global uranium industry which are consistent with the trend in other commodities where customers are increasingly looking for flexible and variable contractual and sales proposals extending beyond the traditional long-term contracts and spot sales transactions. Paladin intends to open marketing offices to better access key customers in Europe and Asia-Pacific, and will add further contract administration and sales personnel both in its head office and in North America; and

- approximately US$10M to fund costs associated with the issue.

ACN 061 681 098

Contact Information

  • Paladin Energy Limited
    John Borshoff
    Managing Director
    +61-8-9381-4366 or Mobile: +61-419-912-571
    or
    Paladin Energy Limited
    Greg Taylor
    Investor Relations Contact
    (905) 337-7673 or Cell: (416) 605-5120 (Toronto area)
    Email: greg.taylor@paladinenergy.com.au
    Website: www.paladinenergy.com.au