Paladin Energy to acquire Fission Uranium creating a clean energy leader
/Not for Release or Distribution in
The Mineral Resource and Mineral Reserve estimates relating to |
- Fission shareholders will receive 0.1076 fully paid shares of Paladin ("Paladin Shares") for each Fission share held at the closing of the Transaction (the "Offer Consideration").
- The Offer Consideration represents:
- an implied value of C$1.30 per Fission Share1;
- an implied equity value of C$1,140 million2;
- a 25.8% premium to the closing price of the Fission Shares on the TSX (
C$1.03 ) on21 June 2024 ; and - a 30.0% premium to the 20-day Volume Weighted Average Price ("VWAP") of the Fission Shares on
21 June 2024 3.
- Upon completion of the Transaction, Fission shareholders will own 24.0% of Paladin4, which will have a pro-forma market capitalisation of approximately
US$3.5 billion 5. - Paladin has applied for listing of the Paladin Shares on the
Toronto Stock Exchange ("TSX") concurrent with completion of the Transaction, such that Fission shareholders will receive TSX-listed Paladin Shares. - Fission's Board of Directors, following the unanimous recommendation by its special committee of independent directors (the "Special Committee"), and in consultation with Fission's financial and legal advisors, recommends that Fission shareholders vote in favour of the Transaction.
-
Cantor Fitzgerald has provided an opinion to the Special Committee to the effect that, as of the date thereof, and based upon and subject to the assumptions, limitations and qualifications stated in such opinion, the Offer Consideration is fair, from a financial point of view to the Fission shareholders. SCP Resource Finance has provided an opinion to the Board of Directors of Fission, stating that as of the date of such opinion, based upon and subject to the assumptions, limitations and qualifications set forth therein, the Offer Consideration to be received by Fission shareholders under the Transaction is fair, from a financial point of view, to Fission shareholders. - Directors and members of senior management of Fission holding 0.7% of the outstanding Fission Shares have entered into voting support arrangements with Paladin pursuant to which they have agreed to vote their Fission Shares in favour of the Transaction at the special meeting of shareholders to be called by Fission to approve the Transaction (the "Fission Meeting").
- The Transaction is targeted to close in the
September 2024 quarter (subject to satisfaction of all conditions under the Agreement).
The combination of Paladin and Fission will create a clean energy leader and will deliver the following benefits to both Paladin and Fission shareholders:
- Enhanced project development pipeline.
- Multi-asset production expected by 2029.
- Diversified presence across leading uranium mining jurisdictions of
Canada ,Namibia andAustralia . - Increased exposure to highly attractive long term uranium fundamentals.
- Increased scale and global profile of Paladin with TSX listing.
The Transaction will also deliver several direct benefits to Fission shareholders:
- Attractive 30.0% premium to Fission's 20-Day VWAP6 and the ability to participate in the upside of Paladin.
- Meaningful 24.0% ownership in a global, multi-asset uranium company with exposure to the producing Langer Heinrich Mine ("LHM").
- Continued exposure to the Patterson Lake South project's ("PLS") future operational profile and exploration upside.
- De-risk Fission's PLS development funding, underpinned by LHM production and customer offtake contract book.
- Opportunity to retain TSX-listed shares in a leading ASX100 growth-focused uranium company providing increased trading liquidity and an enhanced capital markets presence.
____________________________________ |
1 Based on the exchange ratio under the Agreement, being 0.1076 of a Paladin Share for each Fission Share (the "Exchange Ratio") multiplied by the closing price of the Paladin Shares on the ASX of |
2 Based on the closing price of the Paladin Shares on the ASX of |
3 Based on the 20-day VWAP of the Fission Shares on the TSX of |
4 Fully diluted ownership based on the expected Paladin Shares issued and outstanding immediately following completion of the Transaction. |
5 Based on the expected Paladin Shares issued and outstanding immediately following completion of the Transaction and the closing price of the Paladin Shares on the ASX of |
6 Refer to footnote 3. |
Paladin CEO Ian Purdy commented:
"The acquisition of Fission, along with the successful restart of our
Fission is a natural fit for our portfolio with the shallow high-grade PLS project located in
Both sets of shareholders are expected to benefit from the increased scale of the enlarged company, with a combined Mineral Resource representing one of the largest amongst pure-play uranium companies globally and a substantially increased international capital markets exposure. The Transaction also de-risks the development of PLS for Fission shareholders, underpinned by LHM production and Paladin's leading offtake contract book. Paladin will bring the required investment to PLS in order to advance it towards production."
Fission President and CEO
"The combination of Fission and Paladin will create a world class diverse uranium producer, adding a class leading development project in a Tier 1 jurisdiction with the ability to expand production and cash flow profiles in the near term. With commercial production at Langer Heinrich and further development milestones at PLS, this opportunity will create a diverse pureplay uranium company with current production and a deep pipeline of near and mid-term assets available to investors.
The culture and assets between Fission and Paladin are very complimentary. Shareholders will have exposure to a producing asset with a long life of mine, located in a politically stable and globally significant uranium jurisdiction with a long history of uranium production, coupled with Fission's advanced stage, large, near surface, high-grade
This arrangement significantly de-risks the mine-building financing at PLS, with the cash flow generation at Langer Heinrich and a strong balance sheet creating an opportunity to significantly fund the development of PLS through debt and internally generated cash flows with limited further equity dilution."
Transaction Details
The Transaction will create a globally significant uranium company listed on the ASX and TSX with a robust portfolio of exploration, development and production assets.
Pursuant to the Agreement, Paladin will acquire all of the issued and outstanding Fission Shares by way of a court approved plan of arrangement under the
Under the terms of the Agreement, each Fission Share outstanding at the effective time of the Agreement will be exchanged for the Offer Consideration. The Offer Consideration represents an implied value of
Upon completion of the Transaction, existing Paladin and Fission shareholders will own approximately 76.0% and 24.0% of the enlarged Paladin, respectively.
Paladin has applied to list the Paladin Shares on the TSX concurrent with closing of the Transaction. Paladin shareholder approval is not required for the Transaction.7
The Transaction requires the approval of (i) at least 662/3% of the votes cast by Fission shareholders voting as a single class at the Fission Meeting, (ii) at least 662/3% of the votes cast by Fission shareholders and optionholders voting together as a single class at the Fission Meeting, and (iii) a simple majority of the votes cast by Fission's minority shareholders at the Fission Meeting.
The Transaction is also subject to closing conditions customary in transactions of this nature, including receipt of Investment Canada Act and Competition Act (
The Agreement also includes customary reciprocal deal protections, including fiduciary-out provisions, non-solicitation covenants and a right to match any superior proposals. A termination fee of
The Transaction is targeted to be completed in the
Following completion of the Transaction, the Fission Shares will be de-listed from the TSX, the OTCQX and the
Full details of the Transaction will be included in a management information circular of Fission which is expected to be mailed to Fission shareholders in connection with the Fission Meeting on or around
__________________________________ |
7 Paladin has obtained in-principle confirmation from ASX that on receipt of a formal waiver application for a waiver from Listing Rule 7.1, it is (on the information provided) likely to grant the requested waiver. |
8 Converted to A$ using the CAD/AUD exchange rate as of |
Strategic Rationale
1. World-class production and growth pipeline
- LHM recommenced production in
March 2024 with a 17-year mine life and a nameplate capacity of 6Mlbs p.a. U3O8.9 - PLS hosts the shallow, high-grade
Triple R deposit located in theAthabasca Basin inSaskatchewan, Canada . - The PLS Feasibility Study (as defined below) highlighted the potential for a 10-year mine life with annual production of 9.1Mlbs p.a. U3O8.10
- PLS along with the producing LHM and Paladin's Michelin project (which is at the preliminary economic assessment stage) ("Michelin") deliver a quality growth pipeline with the ability to grow production into a structurally tight uranium market.
2. Creation of a leading Canadian development hub
- Creates a new, leading Canadian development hub with two uranium projects, PLS and Michelin.
- High quality multi-asset portfolio with exposure to
Canada's highly prospective Athabasca Basin with exploration upside across all properties.
3. Globally significant uranium resource
- Combined resource representing one of the largest amongst pure-play uranium companies with pro-forma U3O8 Mineral Resources of 544Mlbs and Ore Reserves of 157Mlbs.11
- Diversified uranium portfolio across conventional open-pit and high-grade underground orebodies.
4. Enhanced exposure to highly attractive uranium market
- Multi-asset production expected by the end of the decade leveraged to strong future demand for nuclear energy driven by global decarbonisation.
- Anticipated global uranium supply shortage driven by under-investment over the last decade.
5. Increased international capital markets presence
- Further enhances Paladin's position as the leading ASX100-listed pure-play uranium producer.
- Increased market capitalisation and dual listing on the TSX expected to attract a broader investor base and increased research coverage.
- Increased access to a highly institutionalised, international register and enhanced trading liquidity.
6. Shared commitment to a sustainable future
- Collective focus to help drive the global energy transition to a carbon-free, sustainable future.
- Strong Indigenous and local community engagement across all operating regions.
- United corporate governance across environmental and social frameworks.
- Commitment to creating lasting value in the local economy.
___________________________________ |
9 Refer to Paladin's ASX announcement entitled 'Langer Heinrich Mine Restart Plan Update, Mineral Resource and Ore Reserve Update' released to the ASX on |
10 Refer the technical report titled "Feasibility Study, NI 43-101 Technical Report, for PLS Property" with an effective date of |
11 Comprising existing Paladin JORC Mineral Resources and Ore Reserves (refer to the Competent Person's Statement at the end of this announcement for further information, including for cautionary statements regarding historical estimates) and Fission NI 43‐101 Mineral Resources and Mineral Reserves (refer to the Fission ‐ Foreign Estimate Disclosures in Schedule 1 for further information). Paladin cautions that the NI 43‐101 Mineral Resources and Mineral Reserves for Fission are foreign estimates and are not reported in accordance with the JORC Code. A Competent Person has not done sufficient work to classify the NI 43‐101 Mineral Resources as JORC Code Mineral Resources in accordance with the JORC Code or to classify the NI 43‐101 Mineral Reserves as Ore Reserves in accordance with the JORC Code. It is uncertain that following evaluation and/or further exploration work that the foreign estimates will be able to be reported as Mineral Resources and/or Ore Reserves in accordance with the JORC Code. |
Board of Directors' Recommendations
Fission's Board of Directors, following the unanimous recommendation by its Special Committee, and in consultation with Fission's financial and legal advisors, recommends that Fission shareholders vote in favour of the Transaction.
Advisors
Paladin has engaged
Fission has engaged SCP Resource Finance as financial advisor and
Conference Call / Presentation
Paladin will host two investor calls to accommodate shareholders located across multiple time zones.
The first call will take place at
Phone Registration
https://s1.c-conf.com/diamondpass/10039972-jh87y6.html
Webcast
https://ccmediaframe.com/?id=QjseK9O6
The second call will take place
Phone Registration
https://s1.c-conf.com/diamondpass/10039971-fd67hc.html
Webcast
https://ccmediaframe.com/?id=RpIYQLFb
This announcement has been authorised for release by the Board of Directors of
About Paladin
About Fission
Competent Person's Statement/Scientific and Technical Information
Langer Heinrich Mine
The information in this announcement relating to Mineral Resource and Ore Reserve estimates for the
Michelin
In relation to information in this announcement relating to Mineral Resource estimates for Michelin, please refer to the: (1) ASX Announcement dated
Manyingee &
In relation to information in this Announcement relating to Mineral Resources estimates for the Manyingee &
Patterson Lake South
The information in this announcement relating to Mineral Reserves and Mineral Resources estimates for PLS is based on the technical report titled "Feasibility Study, NI 43-101 Technical Report, for PLS Property" with an effective date of
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed on behalf of the company by
Disclaimers
Not for Release or Distribution in
This announcement may not be released to US wire services. This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in
Limitation on Information Regarding Paladin and Fission
All information in this announcement and in the investor presentation released on the ASX platform today ("Investor Presentation") in relation to Fission and PLS – including in relation to the estimates of Mineral Resources and Mineral Reserves and other technical and financial information (such as historic costs and life of mine plans) - has been sourced from, prepared for, or provided by Fission and its related bodies corporate. Whilst Paladin has undertaken due diligence in order to seek to verify the accuracy of this information, no representation or warranty, expressed or implied, is made as to the fairness, accuracy, correctness, completeness or adequacy of any such information relating to Fission or PLS.
All information in this announcement and in the Investor Presentation in relation to Paladin and LHM including in relation to the estimates of Mineral Resources and Ore Reserves and other technical and financial information (such as historic costs and life of mine plans) - has been sourced from, prepared for, or provided by Paladin and its related bodies corporate. Whilst Fission has undertaken due diligence in order to seek to verify the accuracy of this information, no representation or warranty, expressed or implied, is made as to the fairness, accuracy, correctness, completeness or adequacy of any such information relating to Paladin or LHM.
Not Financial Advice
This announcement is not financial product, investment advice or a recommendation to acquire securities of Paladin or Fission and has been prepared without taking into account the objectives, financial situation or needs of individuals. Each recipient of this announcement should make its own enquiries and investigations regarding all information in this announcement and in the Investor Presentation, including, but not limited to, the assumption, uncertainty and contingencies which may affect future operations of Paladin and/or Fission and the impact that different future outcomes may have on Paladin and/or Fission. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances.
Cautionary Note Regarding Forward Looking Statements
This announcement contains certain "forward looking statements" within the meaning of Australian securities laws and "forward looking information" within the meaning of Canadian securities laws (collectively referred to as "forward looking statements"). All statements, other than statements of historical fact, that address circumstances, events, activities or developments that could, or may or will occur are forward looking statements. Forward looking statements involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies including those risk factors associated with the mining industry, many of which are outside the control of, change without notice, and may be unknown to Paladin or Fission. These risks and uncertainties include but are not limited to liabilities inherent in mine development and production, geological, mining and processing technical problems, the inability to obtain any additional mine licences, permits and other regulatory approvals required in connection with mining and third party processing operations, competition for amongst other things, capital, acquisition of reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, changes in commodity prices and exchange rates, currency and interest fluctuations, various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions, the demand for and availability of transportation services, the ability to secure adequate financing and management's ability to anticipate and manage the foregoing factors and risks.
Forward looking statements in this announcement include, but are not limited to, statements regarding: the expected timetable, outcome and effects of the Transaction; the listing of the Paladin Shares on the TSX, the anticipated benefits of the Transaction to Paladin's and Fission's shareholders; the prospects and outcomes of PLS and LHM; the ability of Paladin and Fission to complete the Transaction on the terms described herein or at all; the plans and strategies of Paladin or Fission; the future performance of Paladin or Fission; the ability to obtain the requisite regulatory, stock exchange, court and shareholder approvals for the Transaction; and statements about market and industry trends, which are based on interpretation of market conditions. Forward looking statements can generally be identified by the use of forward looking words such as "anticipate", "expect", "likely", "propose", "will", "intend", "should", "could", "may", "believe", "forecast", "estimate", "target", "outlook", "guidance" (including negative or grammatical variations) and other similar expressions. No representation, warranty, guarantee or assurance, express or implied, is given or made in relation to any forward looking statement. In particular no representation, warranty or assumption, express or implied, is given in relation to any underlying assumption or that any forward looking statement will be achieved. There can be no assurance that the forward looking statements will prove to be accurate. Actual and future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements were based, because events and actual circumstances frequently do not occur as forecast and future results are subject to known and unknown risks such as changes in market conditions and regulations.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements, and should rely on their own independent enquiries, investigations and advice regarding information contained in this announcement. Any reliance by a reader on the information contained in this announcement is wholly at the reader's own risk.
To the maximum extent permitted by law or any relevant listing rules of the ASX/TSX, Paladin and Fission and their respective related bodies corporate and affiliates and their respective directors, officers, employees, advisors, agents and intermediaries disclaim any obligation or undertaking to disseminate any updates or revisions to the information in this announcement to reflect any change in expectations in relation to any forward looking statements or any such change in events, conditions or circumstances on which any such statements were based. Nothing in this announcement will, under any circumstances (including by reason of this announcement remaining available and not being superseded or replaced by any other announcement or publication with respect to Paladin, Fission or the subject matter of this announcement), create an implication that there has been no change in the affairs of Paladin or Fission since the date of this announcement.
Schedule 1 – Fission – Foreign Estimate Disclosures (as required by ASX Listing Rule 5.12)
The information in this announcement relating to Fission's Mineral Resources and Mineral Reserves is reported in accordance with the requirements applying to foreign estimates in the ASX Listing Rules and, as such, are not reported in accordance with the JORC Code.
A Competent Person has not yet completed sufficient work to classify the Mineral Resources as JORC Code Mineral Resources or to classify the Mineral Reserves as Ore Reserves in accordance with the JORC Code 2012.
It is uncertain that following evaluation and/or further exploration work that the Mineral Resources or Mineral Reserves will be able to be reported as Mineral Resources or Ore Reserves in accordance with the JORC Code.
The information in this announcement relating to Mineral Reserve and Mineral Resource for PLS is based on the technical report titled "Feasibility Study, NI 43-101 Technical Report, for PLS Property" with an effective date of
The Mineral Reserves and Mineral Resources estimates for Fission are not, and do not purport to be, compliant with the JORC Code and are therefore classified as "foreign estimates" under the ASX Listing Rules.
Mineral Resources Statement13
Category |
Tonnage |
Metal Grade |
Contained Metal |
||
(000 t) |
(% U3O8) |
(g/t Au) |
(Mlbs U3O8) |
(000 oz Au) |
|
Indicated |
2,688 |
1.94 |
0.61 |
114.9 |
52.7 |
Inferred |
635 |
1.10 |
0.44 |
15.4 |
9.0 |
Notes: |
|
1. |
CIM (2014) definitions were followed for Mineral Resources. |
2. |
Mineral Resources are reported at a cut-off grade of 0.25% U3O8, based on a long-term price of |
3. |
A minimum mining width of 1 m was applied to the resource domain wireframe. |
4. |
Mineral Resources are inclusive of Mineral Reserves. |
5. |
Numbers may not add due to rounding. |
Mineral Reserve Statement
13
Category |
Tonnage |
Metal Grade |
Contained Metal |
(000 t) |
(% U3O8) |
(Mlbs U3O8) |
|
Probable |
3,007 |
1.41 |
93.7 |
Total |
3,007 |
1.41 |
93.7 |
Notes: |
|
1. |
CIM Definition Standards (2014) were followed for the classification of Mineral Reserves. |
2. |
The Mineral Reserves are reported with an effective date of |
3. |
Mineral Reserves were estimated using a long-term metal price of |
4. |
Underground Mineral Reserves were estimated by creating stope shapes using |
5. |
Mining recovery of 95% was applied to all stopes, while all development mining assumes 100% extraction. |
6. |
The density varies based on block model values. An estimated waste density of 2.42 t/m3 was used for areas outside the block model boundary. |
7. |
By-product credits were not included in the estimation of Mineral Reserves. |
8. |
Numbers may not add due to rounding. |
ASX Listing Rule 5.12 requires specific information to be included in a public announcement that contains a foreign estimate. In accordance with ASX Listing Rule 5.12, Paladin provides the additional information below and the information elsewhere in this announcement.
____________________________________ |
12 Refer to the cautionary statement in relation to ASX Listing Rule 5.12.9 in the table below. |
13 Mineral Reserves and Mineral Resources estimates for PLS is based on the technical report titled "Feasibility Study, NI 43-101 Technical Report, for PLS Property" with an effective date of |
Competent Person's Statement:
ASX Listing Rule |
ASX Explanation |
Commentary |
5.12.1 |
The source and date of the historical estimates or foreign estimates |
The PLS Mineral Resource and Mineral Reserve estimates were prepared under the supervision of Qualified Persons (as defined in the Canadian NI 43-101 Standards). The Qualified Persons were employees and consultants of Fission at the date of the estimate
The source of the foreign estimate is the Fission's TSX announcement entitled "Feasibility Study, NI 43-101 Technical Report, for PLS Property" dated
These foreign estimates are the most recent Mineral Reserve and Mineral Resource estimates for PLS. |
5.12.2 |
Whether the historical estimates or foreign estimates use categories of mineralisation other than those defined in Appendix 5A (JORC Code) and if so, an explanation of the differences |
The PLS foreign estimate of Mineral Resources and Mineral Reserves has been prepared using the Canadian NI 43-101 reporting guidelines. Based on the advice received from its external consultants, Paladin believes that the categories of mineralisation reported under Canadian NI 43-101 Standards are similar to the JORC Code 2012 categories.
Based on the advice received from its external consultants, Paladin considers the foreign estimate to be NI 43-101 compliant.
Based on the advice received from its external consultants, Paladin considers that the foreign estimates provided by Fission are sufficiently reliable and consistent with current industry standard estimation methodologies as generally appropriate for Mineral Resource and Ore Reserve estimation.
The Mineral Resource estimate contains categories of NI 43-101 'Measured', 'Indicated' and 'Inferred', that are consistent with the terminology of the Measured', 'Indicated' and 'Inferred' under the JORC Code 2012. NI 43-101 Mineral Reserves are reported as Proven and Probable in the foreign estimate. These classifications are consistent with definitions of Proved and Probable Ore Reserves in the JORC Code 2012. |
5.12.3 |
The relevance and materiality of the historical estimates or foreign estimates to the entity |
Paladin considers these foreign estimates to be material to Paladin given its intention, through the Transaction, to develop the PLS property. |
5.12.4 |
The reliability of historical estimates or foreign estimates, including by reference to any of the criteria in Table 1 of Appendix 5A (JORC Code) which are relevant to understanding the reliability of the historical estimates or foreign estimates |
The foreign estimate is considered to be reliable by Paladin for the following reasons:
• Key criteria, as defined in Table 1 of the JORC Code 2012, has been addressed in the comprehensive due diligence completed by Paladin and its external consultants.
• The foreign estimate has been reported by Qualified Persons as defined in the Canadian NI 43-101 Standard, who reported that the 17 January 2023 Technical Report meets the due diligence and care requirements as set for in the guidelines for Canadian National Instrument 43-101.
•
Within the
Based on the information received by Paladin and its external consultants to date in relation to PLS, discussions with Fission technical personnel, physical inspection of site operations and site layout, Paladin believes (based on the advice received from its external consultants) that the assumptions, parameters and methodology are generally appropriate for Mineral Resource and Mineral Reserve estimates and are consistent with the style of mineralisation and proposed mining methods, and that sampling protocols are consistent with industry best practice.
|
5.12.5 |
To the extent known, a summary of work programs on which the historical estimates or foreign estimates are based and a summary of the key assumptions, mining and processing parameters and methods used to prepare the historical or foreign estimates |
There are 844 drill holes totalling 227,775m of drilling within the PLS property. The Mineral Resource estimation is based on 696 drill holes, totalling 213,699m of drillings with 114,561 U3O8 assay samples. Block grades are estimated with inverse distance cubed (ID3) within the mineralization grade shell wireframes that represent the basement hosted, structure-controlled uranium mineralization characteristics identified in the property.
Mineral reserves are based on the resource model developed from the 844 drill holes that total 227,775 m on the PLS property. Modifying factors of mine recovery (95% to 100% ) and dilution (from 5% to 18%) were applied to the resource model. The mining methods reviewed for the recovery for the deposit are reasonable given the geometry and depth of the deposit. A nominal production rate of 1000 tonnes per day has been applied to the deposit. A mine cost model was developed based on the proposed mine plan to support the project capex and operating costs.
A series of bench scale and bulk tests were conducted at SGS Canada Inc. – Mineral Services (SGS)
The design for the process plant and related infrastructure facilities for PLS use proven uranium extraction technology, processes and equipment and draws on the knowledge of other
The processing plant has been designed to process ore at a nominal throughput of 1,000 t/d to produce market-grade uranium concentrate. The average life of mine (LOM) mill feed grade is estimated to be 1.41% U3O8, and the estimated overall U3O8 recovery will be 97.0%. |
5.12.6 |
Any more recent estimates or data relevant to the reported mineralisation available to the entity |
As at the date of this announcement, the foreign estimates reported by Fission have not been superseded by any later estimates. No more recent estimates have been completed or provided to Paladin by Fission. |
5.12.7 |
The evaluation and/or exploration work that needs to be completed to verify the historical estimates or foreign estimates as Mineral Resources or Ore Reserves in accordance with ASX Listing Rules Appendix 5A (JORC Code) |
Following completion of the Transaction, it is Paladin's intention to undertake an evaluation of the data available to seek to verify the foreign estimate as Mineral Resources or Ore Reserves in accordance with the JORC Code. This evaluation will involve the full verification of all information and applicable modifying factors used in the 17 January 2023 estimation together with the addition of information and results from ongoing drilling programs within PLS project area. External consultants will be used as required.
Key works proposed to verify the foreign estimate as estimates in accordance with the JORC Code 2012 includes:
• Detailed verification and validation of information provided by Fission. Review of modifying factors used in the Mineral Resource and Mineral Reserve. |
5.12.8 |
The proposed timing of any evaluation and/or exploration work that the entity intends to undertake and a comment on how the entity intends to fund that work |
Paladin intends to conduct further resource definition and regional exploration work at PLS. This work is expected to commence in 2025 or as soon as practicable after completion of the Transaction and will be funded from available cash balances. |
5.12.9 |
A cautionary statement proximate to, and with equal prominence as, the reported historical estimates or foreign estimates stating that: • the estimates are historical estimates or foreign estimates and are not reported in accordance with the JORC Code; • a Competent Person has not done sufficient work to classify the historical estimates or foreign estimates as Mineral Resources or Ore Reserves in accordance with the JORC Code; and • it is uncertain that following evaluation and/or further exploration work that the historical estimates or foreign estimates will be able to be reported as Mineral Resources or Ore Reserves in accordance with the JORC Code |
Paladin cautions that the Mineral Resources and Mineral Reserves for Fission are not reported in accordance with the JORC Code 2012. A Competent Person has not yet completed sufficient work to classify the Mineral Resources as JORC Code Mineral Resources or to classify the Mineral Reserves as Ore Reserves in accordance with the JORC Code 2012. It is uncertain that following evaluation and/or further exploration work that the Mineral Resources or Mineral Reserves will be able to be reported as Mineral Resource or Ore Reserves in accordance with the JORC Code. Nothing has come to the attention of Paladin that causes it to question the accuracy or reliability of Fission's estimates of NI 43-101 Mineral Resources and Mineral Reserves, but Paladin has not independently validated those estimates and therefore Paladin is not to be regarded as reporting, adopting or endorsing those estimates. |
|
A statement by a named competent person or persons that the information in the market announcement provided under rules 5.12.2 to 5.12.7 is an accurate representation of the available data and studies for the material mining project. The statement must include the information referred to in rule 5.22(b) and (c) |
See Competent Person's statement above. |
SOURCE