Langer Heinrich Mine resumes production after six-year hiatus

Martin Endjala

Langer Heinrich Mine (LHM) has announced the restart of its production activities, marking a significant milestone after more than six years of care and maintenance.

The first ore feed to the processing plant was successfully achieved in January, signalling the commencement of operations.

Paladin Energy Ltd, the company operating LHM, has secured a financial boost by executing a US$150 million syndicated debt facility on 24 January 2024, ahead of the resumption of operations.

This strategic move, as explained by Paladin’s Chief Executive Officer Ian Purdy, is aimed at providing the company with the necessary capital flexibility during the transition to full production at LHM.

The debt facility, arranged in collaboration with Nedbank Limited (acting through its Corporate and Investment Banking division) and Macquarie Bank Limited, consists of a US$100 million amortizing term loan with a five-year term and a $50 million revolving credit facility with a three-year term, extendable by two additional 12-month periods.

This financial arrangement, resulting from a thorough syndication process that included site visits, corporate due diligence, and an international syndication process, reflects Paladin’s commitment to prudent capital management for the benefit of the company and its shareholders.

Purdy expressed confidence in the debt facility’s role in enhancing capital flexibility during LHM’s ramp-up phase, leading to full-scale production.

With the current positive outlook on uranium prices and the mine’s return to production, Paladin is well-positioned to generate robust returns for its stakeholders.

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