Paladin Energy Enters Takeover Bid for Summit Resources

Paladin Energy Enters Takeover Bid for Summit Resources

Paladin already owns 82.08 percent of the uranium explorer; if the takeover is successful the company will gain 100-percent control of Summit.

Australia-based Paladin Energy (ASX:PDN) has made a takeover offer for Summit Resources (ASX:SMM). Paladin already owns 82.08 percent of the uranium explorer, if the takeover is successful the company will gain 100-percent control of Summit.

By acquiring the smaller uranium-focused company, Paladin will bolster its uranium assets in Australia. For its part in the deal, Summit will receive one new Paladin share for each Summit share at roughly AU$20.2 cents per share. This represents a target value of AU$44.01 million.

“Paladin’s offer provides Summit shareholders with an opportunity to become shareholders in a company that has exposure to a broader range of uranium projects and with a stock which has greater liquidity than what Summit currently enjoys,” Mal Randall, Summit’s non-executive director said in a company announcement.

When the acquisition is complete, Paladin will have added valuable uranium resources to its repertoire, increasing its presence in the uranium market. Summit currently explores and has rights to five sites with varying degrees of uranium potential.

Summit’s main project, and the focus of Paladin’s interest, is Isa North, which covers approximately 935km2 and hosts a number of uranium prospects, including the Valhalla, Skal and Bikini deposits.

According to the Q2 financial report released by Summit last week, the Mount Isa region contains 104.6 million tonnes of measured and indicated resource.

Paladin, which operates sites in Australia, Canada and Africa, is adamant that the deal will give it a relevant interest in more than 90 percent of all Summit shares on issue, and at least 75 percent of the Summit shares that Paladin is offering to acquire under the offer.

“If successful, the offer would result in approximately 39.1 million new Paladin shares being issued to third-party shareholders representing approximately 2.28 percent of Paladin’s shares outstanding,” noted the international uranium miners press release.

Shares in Paladin remained flat on Wednesday (August 1) and closed at AU$0.20. Meanwhile, Summit’s share price was slightly up, ending the trading day at AU$0.20.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Hastings Technology Metals Ltd Measured and Indicated Mineral Resource Tonnes Up by 54%

Perth, Australia (ABN Newswire) – Australia’s next rare earths producer, Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM), is pleased to announce a material increase in Mineral Resource Estimate at its Yangibana Rare Earths Project (Yangibana) in Western Australia’s Gascoyne region.

Highlights

– Measured and Indicated Mineral Resource tonnes increased by 54% to 16.3Mt for Yangibana deposits drilled during 2020.

Keep reading... Show less

ASI certifies Rio Tinto’s ISAL smelter for responsible production

Rio Tinto’s ISAL smelter in Iceland has been certified by the Aluminium Stewardship Initiative (ASI) for meeting the highest internationally recognised standards for responsible aluminium production.

The certification continues Rio Tinto’s leadership of the industry on responsible aluminium production from mine to metal, and means customers can be assured aluminium produced at ISAL meets independent environmental, social and governance standards.

Keep reading... Show less

Rio Tinto updates details of tailings facilities

Rio Tinto today released updated information in relation to its global tailings facilities to align with the requirements of the Global Industry Standard for Tailings Management (GISTM) released in August 2020, an initiative co-convened by the International Council on Mining and Metals, United Nations Environment Programme and the Principles for Responsible Investment.

The latest disclosure at http://www.riotinto.com/tailings builds on previously disclosed information on each of Rio Tinto’s global tailings facilities released in June 2019 and the publication of Rio Tinto’s Group Procedure and updated Standard for ‘Management of tailings and water storage facilities’ in February 2019. The changes to existing data are in line with guidance contained in GISTM including updating information previously disclosed.

Keep reading... Show less

Hastings Technology Metals Ltd Quarterly Activities Report

Perth, Australia (ABN Newswire) – Australia’s next rare earths producer, Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM) is pleased to report on exploration and development activities for the three-month period to 31st March 2021. Most of the activity focused on the Company’s Yangibana Rare Earths Project (“Yangibana”) in the Gascoyne region of Western Australia.

Highlights

– Hastings raised $100.7 million (before costs) through a two-tranche equity placement priced at $0.19 per share, with funds to be used to advance development of the Yangibana Rare Earths Project.

Keep reading... Show less

Argyle Diamond Mine Closure: What’s Next for the Sector in Australia?

Click here to read part one of this article, which covers the closure of the Argyle diamond mine.

When the mining equipment permanently shut down at Western Australia's Argyle mine in November 2020, the country's diamond sector entered a transitional period.

As the world's fourth largest diamond-producing asset shuttered, domestic output of the gems instantly declined by as much as 90 percent.

Keep reading... Show less

Top News

Related News