The Paladin Energy Ltd (ASX: PDN) share price is falling today amid the company undertaking a share purchase plan.
The uranium miner's shares are currently swapping hands at 76.5 cents, a 4.38% fall on yesterday's closing price. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 1.16% at the time of writing.
Let's take a look at what is happening at Paladin Energy.
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What did Paladin Energy announce?
Paladin opened a share purchase plan (SPP) for eligible Paladin shareholders. New shares under the SPP are being offered 72 cents per share, an 8.9% discount on the last closing price before the plan was announced of 79 cents.
Funds from the equity raise will be used to restart work at the Langer Heinrich uranium mine in Namibia.
The company is hoping to raise $15 million from the share purchase plan. A fully underwritten institutional placement was also undertaken to garner another $200 million.
Following the capital raise, Paladin hopes to have pro forma cash of $259 million with no corporate debt.
Paladin said the equity raise will de-risk restarting operations at the mine and will also position the company well for more uranium marketing initiatives.
The share purchase plan closes at 5pm Perth time on 26 April.
Paladin also recently received a uranium sales tender award to supply uranium concentrates to a subsidiary of US-based Duke Energy Corporation. The deal, subject to conditions, involves the supply of up to 2.1 million pounds of triuranium octoxide over six years from 2024.
Paladin Energy share price snapshot
The Paladin Energy share price has soared 76% in the past year, although it has lost 13% year to date.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 8% over the past year.
In the past week, Paladin shares have slid more than 4% but still remain up 3% over the past month.
Paladin has a market capitalisation of about $2 billion based on the current share price.
