Paladin Energy Draws US$127.2 Million For Langer Heinrich Work

Paladin Energy Ltd. (PDN.AU) has drawn down US$127.2 million from the project finance facility for its Langer Heinrich uranium mine, the world's fifth-largest by output, the company said Monday.

The money, equivalent to 90% of the US$141 million facility, will be used to replenish cash reserves which have so far been spent developing the project to expand output to 5.2 million pounds a year in the first three months of 2012, from 3.7 million pounds a year currently.

"The undrawn portion of the facility post drawdown (being US$7.8 million) will be used to meet the remaining construction expenditure," Paladin said in a statement.

The facilities were being provided by Societe Generale, Nedbank Capital, Standard Bank, Barclays Capital and Rand Merchant Bank.

Paladin said the expansion at the mine was on track. Langer Heinrich is one of the largest deposits in Namibia's uranium belt, along with Rio Tinto PLC's (RIO) Rossing mine, the world's third-largest uranium mine by output.

-By David Fickling, Dow Jones Newswires; [phone]; [e-mail]