Paladin: Shares suspended from continued trading

Company News

by Jessica Amir

Paladin Energy Limited's (ASX:PDN) shares will be suspended from continued trading until the company responds to a potential option.

Paladin received a notice from China National Nuclear Company (CNNC), Overseas Uranium Holdings Limited, to start the process of potentially exercising an option over Paladin's stake in the Langer Heinrich Mine (LHM).

It comes as the Chinese state-owned giant, China National Nuclear Company (CNNC), requested Paladin work out the fair market value of Paladin's 75% share in the open pit mine in West Namibia.

Paladin says the potential option creates uncertainty about its restructure proposal - which is critical to its financial viability.

As a result, Paladin's trade suspension will remain until it responds to the potential CNNC option and also progresses its restructure proposal. Both should be finalised by at least the end of March 2017.

Paladin Energy Limited (ASX:PDN) reported a net loss of US$46M for half year to 31 December 2016.

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