Paladin Energy Limited (ASX:PDN)
has announced it will commence arbitration proceedings against China National Nuclear Company (CNNC), Overseas Uranium Holdings Limited.
The uranium production company, Paladin, says CNNC has put its shareholders, stakeholders, employees, and related entities all at risk, so it is now taking action.
Paladin is disputing CNNC’s actions and the notice it gave to determine the fair market value of Paladin's 75% stake in the Langer Heinrich Mine (LHM) in Namibia.
That fair market value determination starts the process of CNNC potentially buying Paladin’s share of the mine.
The miner says if CNNC does buy its stake in the mine, Paladin will probably not be able to implement its Restructure Proposal, which would preserve stakeholder value.
Paladin says it is not only disappointed that CNNC refused to fund the working capital of the mine, but it also failed to proceed with the purchase of 24% of the mine, when it was offered to the Chinese company last year.
Paladin’s shares will remain in suspension until it has resolved how to progress the Restructure proposal or an alternative.