Paladin Energy’s bid to acquire Canada-based Fission Uranium Corporation has hit further delays, following news overnight.
Paladin Energy’s bid to acquire Canada-based Fission Uranium Corporation has hit further delays, following news overnight.
The Ian Purdy-led uranium miner told the market it had received a notice from Canada’s federal minister for innovation, science and industry, François-Philippe Champagne, who has elected to extend the national security review period for the deal.
This cut-off date is now December 30. In line with previous announcements, Paladin reiterated there was no certainty it would receive Investment Canada Act clearance in a timely manner.
Should it not receive this clearance, the proposed $1.25 billion acquisition would be off.
On June 24, Paladin announced the deal, stating the acquisition – coupled with a production restart at its flagship Langer Heinrich mine in Namibia – would help the uranium producer enhance its portfolio.
The company was hopeful the transaction would be finalised by September, following successful endorsement by Fission’s shareholders.
Despite receiving an approval rate more than 66.67 per cent, the arrangement hearing which began on September 13 was delayed, following an objection to the deal from CGN Mining Company Limited, which held a 11.26 per cent stake in Fission.
CGN, a Hong Kong-based firm, is a subsidiary of China General Nuclear Power Corporation.
On October 2, Paladin received correspondence from Mr Champagne, who called for the national security review of the arrangement under the Investment Canada Act, around the same time as Fission received arrangement approval from the Supreme Court of British Columbia.
Last week, the uranium producer reiterated that due to “operational challenges” at Langer Heinrich, of which it has a 75 per cent stake, it had revised its 2025 financial year production guidance from 4-4.5 million pounds of uranium oxide to 3-3.6 million pounds of uranium oxide.
Despite this, production is expected to rise during the final six months of the 2025 financial year, despite a planned shutdown for the remainder of November due to improvement and operational upgrades.
As of 12.25pm WST, Paladin shares were relatively flat at $7.91.
