PERTH, WESTERN AUSTRALIA--(Marketwire - Sept. 12, 2011) - Paladin Energy Ltd ("Paladin" or "the Company") (TSX:PDN - News; ASX:PDN - News) wishes to note that the Company's Board of Directors advise that financial close has been reached under the Langer Heinrich Project Finance Facility ("Facility"), and Paladin has submitted a drawdown notice for US$127.2M.Paladin has to date funded the Stage 3 expansion from existing cash reserves and as such, the majority of the funds will be used to reimburse Paladin. The undrawn portion of the Facility post drawdown (being US$7.8M) will be used to meet the remaining construction expenditure.
The US$141M Facility consists of:-
-- US$135M Project Financing Facility - currently drawn to US$127.2M
-- US$6M Cost Overrun Facility - currently undrawn
In accordance with the terms of the Facility, an equity cost overrun account is funded with a further US$6M.The facilities are being provided by Societe Generale (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.With the continued support of our existing Stage 1 financiers together with the addition of two new lenders, Paladin is confident the Stage 3 expansion at Langer Heinrich is on track with construction finalisation and commissioning to reach nameplate capacity in the 1st quarter of 2012. The Stage 3 expansion will increase production capacity from the current 3.7Mlb pa to 5.2Mlb pa.