Paladin becomes sole owner of Michelin uranium project

Michelin is said to be among North America’s largest uranium deposits. (Image courtesy of Paladin Energy.)

Shares in Australia’s Paladin Energy (ASX: PDN) jumped on Wednesday after the company announced it had increased its interest in the Michelin uranium project, in Labrador, Canada, to 100% from 75% previously.

As a result of the funding and dilution provisions of the Michelin joint venture agreement, the Michelin nominees have surrendered their 25% participating interest to Paladin’s subsidiary Aurora Energy Limited, it said.

Paladin’s stock rose on the news as much as 4.32% to A$0.965, its biggest intraday percentage gain since Oct. 11. It closed 2.7% higher at A$0.95 each, which gives it a market capitalization of A$2.83 billion ($1.8bn).

The company said the Michelin exploration project is located in a premier mining jurisdiction, with more than $75 million of in-ground exploration work previously undertaken.

Paladin has recently completed an extensive geological review, including an on-ground review of historic data and an airborne gravity-gradiometry survey.

The company has also re-opened an office in St John’s Newfoundland and has successfully recruited an in-country exploration team.

With its joint venture partners now out of the picture, Paladin said it will work on defining a path forward for the project. It noted it expects to update investors in the first half of next year.