Australia-based Paladin Energy Limited is set to acquire Canadian uranium developer Fission Uranium Corp, creating a “globally significant uranium company” listed on both Australian and Canadian stock exchanges.
This merger will combine the strengths of both companies and expedite the development of Fission’s Patterson Lake South project towards production.
Benefits for Shareholders
Shareholders of both companies will gain from an enhanced project development pipeline, with multi-asset production anticipated by 2029.
The merged entity will boast a diversified presence across leading uranium mining jurisdictions, including Canada, Namibia, and Australia.
Combining Complementary Assets
Paladin, listed on the Australian Securities Exchange (ASX), owns 75% of the Langer Heinrich uranium mine in Namibia, which recently resumed commercial operations.
Paladin’s diverse portfolio also includes uranium exploration and development projects in Canada and Australia.
Fission, listed on the Toronto Stock Exchange (TSX), wholly owns the high-grade Patterson Lake South (PLS) uranium project in Saskatchewan, with a feasibility study indicating potential for a 10-year mine life.
Transaction Details and Market Impact
Paladin will acquire all issued and outstanding shares of Fission through a court-approved plan of arrangement.
Upon completion, Fission shareholders will own 24% of Paladin, resulting in a pro-forma market capitalization of approximately USD 3.5 billion.
Paladin has applied for listing on the Toronto Stock Exchange to facilitate this transaction.
Leadership Perspectives
Paladin CEO Ian Purdy describes Fission as a “natural fit” for their portfolio, strengthening their Canadian development hub alongside the Michelin project and offering exploration potential across all Canadian properties.
The transaction will de-risk the development of PLS for Fission shareholders, leveraging Paladin’s production from Langer Heinrich and offtake contracts.
Fission President and CEO Ross McElroy anticipates the merger will create a world-class diversified uranium producer with near-term production expansion capabilities.
He emphasizes the opportunity to establish a diverse pure-play uranium company with current production and a robust pipeline of assets available to investors.
Future Outlook
The combination of the two companies will form one of the largest pure-play uranium companies, with pro-forma U3O8 mineral resources of 544 million pounds and ore reserves of 157 million pounds across conventional open-pit and high-grade underground orebodies. Multi-asset production is expected by the end of the decade.
The transaction is expected to close in the third quarter of this year, subject to meeting certain conditions.