Newmont Mining (NYSE:NEM) has sold its 5.4% stake in Paladin Energy (TSE:PDN) (ASX:PDN) through a book-build process, to a broad range of institutional investors.
The sale was underwritten by an investment bank at a fixed price of 52.5 cents per share, which will generate more than $24 million in cash for Newmont, reflecting its strategy to divest non-core assets, some of which are included in the mining giant's marketable securities portfolio.
"Newmont will continue to evaluate its holdings and may, from time to time, divest other equity positions and assets under favorable conditions and terms," said executive VP of strategic development at Newmont, Randy Engel, in a release Tuesday.
Newmont acquired the shareholding through its acquisition of Fronteer Gold in 2011, which had previously sold the Aurora uranium assets to Paladin.
Last month, Paladin said it was suspending production at its Kayelekera uranium mine in Malawi, calling the operation a substantial drain on its cash resources over the last three years. The company told investors at the time that the suspension would involve placing the operation on care and maintenance status until the price of uranium recovers. The move is expected to preserve the remaining ore body until this time, when Paladin decides that production can resume on a profitable basis.
The price of uranium oxide has been depressed ever since March 2011, when the Fukushima earthquake and tsunami hit in Japan.
Paladin said in a statement this morning that it understands the sale is consistent with Newmont's strategy of divesting non-core assets to align its investment interests with its global gold production business.
"We are pleased with the result of the successful sale by Newmont and the additional stability it brings to the Paladin shareholder register," said CEO of Paladin, John Borshoff.
"We are happy to welcome a number of new, high quality Australian and international investors to Paladin as a result of the transaction." Reported by Proactive Investors 6 hours ago.
The sale was underwritten by an investment bank at a fixed price of 52.5 cents per share, which will generate more than $24 million in cash for Newmont, reflecting its strategy to divest non-core assets, some of which are included in the mining giant's marketable securities portfolio.
"Newmont will continue to evaluate its holdings and may, from time to time, divest other equity positions and assets under favorable conditions and terms," said executive VP of strategic development at Newmont, Randy Engel, in a release Tuesday.
Newmont acquired the shareholding through its acquisition of Fronteer Gold in 2011, which had previously sold the Aurora uranium assets to Paladin.
Last month, Paladin said it was suspending production at its Kayelekera uranium mine in Malawi, calling the operation a substantial drain on its cash resources over the last three years. The company told investors at the time that the suspension would involve placing the operation on care and maintenance status until the price of uranium recovers. The move is expected to preserve the remaining ore body until this time, when Paladin decides that production can resume on a profitable basis.
The price of uranium oxide has been depressed ever since March 2011, when the Fukushima earthquake and tsunami hit in Japan.
Paladin said in a statement this morning that it understands the sale is consistent with Newmont's strategy of divesting non-core assets to align its investment interests with its global gold production business.
"We are pleased with the result of the successful sale by Newmont and the additional stability it brings to the Paladin shareholder register," said CEO of Paladin, John Borshoff.
"We are happy to welcome a number of new, high quality Australian and international investors to Paladin as a result of the transaction." Reported by Proactive Investors 6 hours ago.