The off-take component of the deal will allow CNNC to acquire its pro-rata share of production from Langer Heinrich at the prevailing market spot price.
In a separate statement, Paladin said it has refinanced the existing $110m project finance facility and $20m working capital facility into a new $70m syndicated loan facility.
The company plans to use the proceeds from the Langer Heinrich stake sale to repay around $30.83m of the existing facility, taking the outstanding balance to $70m.
The new facility is provided by Nedbank Capital, Nedbank Namibia, the Standard Bank of South Africa and Standard Bank Namibia. It will provide Paladin with significant cash flow benefits and further strengthens its financial position.
Paladin managing director and CEO John Borshoff said: "Once again, Paladin has been able to refinance the facility in a tough uranium price environment whilst significantly reducing the security requirements and medium term principal repayments.
"Paladin continues to focus on ways to reduce the Company’s overall debt levels and this represents another step in this process."
