Australian uranium company given go-ahead to absorb Canadian counterpart
A major acquisition in Canada’s uranium sector is going forward after getting approval from the federal government.
Paladin Energy Ltd., which is headquartered in Perth, Australia, has been given the green light to take over Kelowna, B.C.-based Fission Uranium Corp., which has been developing its Patterson Lake South Project (PLS) in northern Saskatchewan’s Athabasca basin. The mine there is set to begin production in 2029.
The acquisition of Fission Uranium was valued at $1.14 billion when first announced this past summer and the combined entity now has a market cap of about three billion Australian dollars.
“We’re really pleased and quite excited to have completed all of the processes,” Paladin Energy chief executive Ian Purdy said.
With the closing of the deal, Paladin Energy shares are now being traded on the Toronto Stock Exchange. Purdy said the new entity is one of the world’s largest independent uranium producers and has a lot of growth potential.
“We’re now really excited to have one of the best undeveloped projects in the world in Athabasca as part of our portfolio,” he said.
Paladin Energy’s acquisition of Fission Uranium was subject to review under the Investment Canada Act due to concerns about national security since uranium is considered a critical mineral by the federal government.
The Ministry of Science and Economic Development, which is responsible for enforcing the legislation, said the deal was reviewed by Canadian security and intelligence agencies, which found it would not be harmful to national security.
The ministry said Paladin Energy made submissions to assuage potential government concerns.
“The undertakings submitted by Paladin include board independence measures, assurances for compliance
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