Under the offer, Fission shareholders will receive 0.1076 shares of Paladin for every Fission share held, the company said, adding the deal implies a value of C$1.30 per share for the Canadian miner, a 25.8% premium to its closing price of C$1.03 on Friday.
Paladin has applied for listing its stock on the Toronto Stock Exchange (TSX), where Fission shareholders will own 24% Paladin shares, the company said.
Fission’s board has recommended shareholders’ vote in favour of the transaction, Paladin added.
“This arrangement significantly de-risks the mine-building financing at Patterson Lake South projects (PLS), with the cash flow generation at Langer Heinrich and a strong balance sheet creating an opportunity to significantly fund the development of PLS,” Fission President and CEO Ross McElroy said.
($1 = 1.3685 Canadian dollars)
(Reporting by Sneha Kumar; Editing by Subhranshu Sahu and Rashmi Aich)
