Cassels Brock Represents Paladin Energy Ltd. in the $200 Million Prepayment for its Long Term Off-Take Agreement

Published: 09/18/2012

By David Budd, Gordon R. Chambers, Erik Goldsilver, Jennifer Hansen, H. Jane Murdoch, Andrew Spencer

On August 15, 2012, Paladin Energy Ltd. (“Paladin”) announced that it has signed a landmark 6 year off-take agreement (the “agreement”) with a major utility to deliver a total of 13.73Mlb U3O8 in the period from 2019 to 2024.  The contract incorporated a prepayment of US$200 million and its length underscores the operational capability Paladin has attained in the uranium supply sector.

Cassels Brock assisted Paladin with regards to settling the terms of the $200 million  Prepayment Agreement and related security, in respect of part of the future product deliveries. To secure Paladin’s obligation to deliver product representing the prepayment amount, the utility holds security over 60.1% of Paladin’s Michelin project in Canada.

The final security documentation, which finalized the transaction, was registered on September 7, 2012.

Paladin was assisted through both Cassels Brock's Vancouver and Toronto offices with a team that included Gordon Chambers (Securities & Mining), Jane Murdoch (Securities & Mining), David Budd (Financial Services & Mining), Joanna Cameron (Securities & Mining), Erik Goldsilver (Securities & Mining), Jennifer Hansen (Securities & Mining) and Andrew Spencer (Securities & Mining).