The Australian company producing uranium in Africa, plans to sell shares to fund acquisitions and pay for mine exploration and development.
The sale may be as much as 15 percent of the company’s outstanding shares, Subiaco, Western Australia-based Paladin said today in a statement. That would value the offering at about C$429 million ($397 million) based on the company’s current market capitalization of C$2.86 billion. The price of the shares will be set after an overnight marketing effort, the company said.
RBC Capital Markets and UBS AG are leading the share sale, Paladin said.
Proceeds may also be used to fund expansion of Paladin’s Langer Heinrich project in Namibia.
Paladin Energy rose 41 cents, or 9.8 percent, to C$4.59 on the Toronto Stock Exchange before being halted for the announcement. The shares climbed 87 percent this year through Sept. 4.