Paladin Energy to Acquire Fission Uranium Corp

Paladin Energy Limited (ASX: $PDN OTCQX:PALAF) has entered into a definitive arrangement agreement to acquire 100% of the issued and outstanding shares of Fission Uranium Corp. (TSX:FCU OTCQX:FCUUF FSE:2FU) by way of a court approved plan of arrangement under the Canada Business Corporation Act. Fission shareholders will receive 0.1076 fully paid shares of Paladin for each Fission share held at the closing of the Transaction, representing an implied value of C$1.30 per Fission Share and an implied equity value of C$1,140 million. The Transaction is targeted to close in the September 2024 quarter, subject to satisfaction of all conditions under the Agreement.

Executive Commentary

Paladin CEO lan Purdy stated, 'The acquisition of Fission, along with the successful restart of our Langer Heinrich Mine, is another step in our strategy to diversify and grow into a global uranium leader across the top uranium mining jurisdictions of Canada, Namibia, and Australia. Both sets of shareholders are expected to benefit from the increased scale of the enlarged company, with a combined Mineral Resource representing one of the largest amongst pure-play uranium companies globally and a substantially increased international capital markets exposure.' Fission President and CEO Ross McElroy added, 'The combination of Fission and Paladin will 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.'

Summary

The acquisition of Fission Uranium Corp. by Paladin Energy Limited is set to create a globally significant uranium company with a robust portfolio of exploration, development, and production assets. The Transaction is expected to close in the September 2024 quarter, subject to satisfaction of all conditions under the Agreement. The combined entity will have a pro-forma market capitalization of approximately US$3.5 billion, with Fission shareholders owning 24.0% of Paladin. The acquisition aims to enhance project development pipeline, achieve multi-asset production by 2029, and diversify presence across leading uranium mining jurisdictions of Canada, Namibia, and Australia. The Transaction is also expected to deliver direct benefits to Fission shareholders, including an attractive 30.0% premium to Fission's 20-Day VWAP and the ability to participate in the upside of Paladin.