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Note 27. Asset AcquisitionNote 29. Non-Cash Financing And Investment Activities

NOTE 28. EVENTS AFTER THE BALANCE SHEET DATE

Since the end of the financial year, the Directors are not aware of any other matter or circumstance not otherwise dealt with in this report or the Financial Statements, that has significantly or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent years with the exception of the following, the financial effects of which have not been provided for in the 30 June 2011 Financial Report:

Uranium Sales Agreement Signed

On 22 August 2011, the Company announced the signing of a series of term uranium sales agreements for output from the Langer Heinrich Stage 3 expansion. The agreements have been signed with three new customers in the United States and further strengthens Paladin’s already significant presence within the U.S. nuclear market. Production commitments from the new agreements total more than 2.8Mlb U3O8 with deliveries beginning in 2012 and extending through to 2016. Contractual pricing provisions incorporate both fixed and base (escalated) mechanisms ranging from the low- to -mid-$60’s per pound U3O8.

Langer Heinrich Mine, Namibia
Execution of US$141M Project Finance Facility for Stage 3 Expansion

On 26 August 2011, the Company announced that the financing documentation required for the Stage 3 expansion had been finalised and executed. The Stage 3 expansion of LHM in Namibia will increase production to 5.2Mlb pa from its current capacity of 3.7Mlb pa.

The initial development funding for the project has been via Paladin’s existing cash reserves. The Langer Heinrich Stage 3 expansion is now fully financed and is on track to reach nameplate capacity in the 1st quarter of 2012.

Paladin and a syndicate of banks executed a US$141M Project Financing Facility, consisting of a 6 year Project Finance Facility of US$135M with a Costs Overrun Facility of US$6M. The facility is being provided without a parent company guarantee from Paladin. The facilities are being provided by Société Générale (as Agent), Nedbank Capital, Standard Bank Plc, Barclays Capital (the investment banking division of Barclays Bank PLC) and Rand Merchant Bank, a division of FirstRand Bank Limited (RMB). Drawdown on the financing is subject to fulfilment of conditions precedent usual for this type of facility.

© 2011Paladin Energy Ltd
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