Paladin Energy Ltd

Paladin Energy Ltd

September 12, 2011 07:30 ET

Paladin Energy Ltd.- Langer Heinrich Mine, Namibia US$141M Project Finance Facility Drawdown

PERTH, WESTERN AUSTRALIA--(Marketwire - Sept. 12, 2011) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN) (ASX:PDN) wishes to note that the Company's Board of Directors advise that financial close has been reached under the Langer Heinrich Project Finance Facility ("Facility"), and Paladin has submitted a drawdown notice for US$127.2M.

Paladin has to date funded the Stage 3 expansion from existing cash reserves and as such, the majority of the funds will be used to reimburse Paladin. The undrawn portion of the Facility post drawdown (being US$7.8M) will be used to meet the remaining construction expenditure.

The US$141M Facility consists of:-
  • US$135M Project Financing Facility – currently drawn to US$127.2M
  • US$6M Cost Overrun Facility – currently undrawn

In accordance with the terms of the Facility, an equity cost overrun account is funded with a further US$6M.

The facilities are being provided by Société Générale (as Agent), Nedbank Capital, Standard Bank Plc, Barclays Capital (the investment banking division of Barclays Bank PLC) and Rand Merchant Bank, a division of FirstRand Bank Limited.

With the continued support of our existing Stage 1 financiers together with the addition of two new lenders, Paladin is confident the Stage 3 expansion at Langer Heinrich is on track with construction finalisation and commissioning to reach nameplate capacity in the 1st quarter of 2012. The Stage 3 expansion will increase production capacity from the current 3.7Mlb pa to 5.2Mlb pa.

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