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Australian mining company Paladin Energy’s proposed acquisition of Canadian mining company Fission Uranium has been postponed due to the extension of the national security review period in Canada until 30 December 2024.
The review, conducted by the Minister of Innovation, Science and Industry under the Investment Canada Act, was expected to close in the September 2024 quarter, subject to the satisfaction of all conditions.
The ongoing assessment leaves the completion of the arrangement uncertain, as Fission requires clearance to finalise the transaction.
Paladin Energy and Fission Uranium entered a definitive arrangement agreement in June to acquire all issued and outstanding Fission shares through a court-approved plan. After the transaction, Paladin and Fission shareholders will own 76% and 24% of the enlarged Paladin, respectively.
The merger of Paladin and Fission is expected to offer shareholders a clean energy leader with enhanced project development pipelines and multi-asset production by 2029.
Fission shareholders are poised to benefit directly from the transaction, such as a 30% premium on their shares and continued exposure to the Patterson Lake South (PLS) uranium project, Fission Uranium’s sole project, located in Canada's Athabasca Basin district.
The deal also aims to de-risk Fission's project development funding, supported by Paladin's production and customer offtake contract book.
Adding PLS will strengthen Paladin’s position in Canada, creating a development hub alongside the company’s Michelin project, with exploration potential across all Canadian properties.
The acquisition of Fission, coupled with the successful restart of the Langer Heinrich mine, will advance the combined entity’s strategy to diversify and establish itself as a global leader in uranium across key mining jurisdictions in Canada, Namibia and Australia, the company claims.
It will enhance exposure to the uranium market and increase international capital markets presence, with a shared commitment to a sustainable future.
"Paladin’s Fission Uranium acquisition faces extended review in Canada" was originally created and published by Mining Technology, a GlobalData owned brand.
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