The company had been in negotiations with two nuclear power firms to sell 15-20% stake in the mine that is located in Namibia.
Based on UBS’ recent $1.1bn valuation of the mine, a successful sale can earn between $165m -$220m, reported AAP.
According to Paladin, the strategic value of the asset is not expected to reflect in the offer price due to the current low spot uranium price ($34.5/lb). The company instead will use a shareholder-diluting $88m capital raising to reduce about $670m debt.
The company said in a statement that it will resume the sale process after the rise in market price – at least $70/lb.
Langer Heinrich has a mine life of more than 20 years. It produced 5.3 million pounds, out of the company’s 8.26 million pounds of output in the year until 30 June.
