Australia-based Paladin Energy announced on Tuesday that shareholders of Canadian firm Fission Uranium have approved its acquisition, marking a significant step forward in the C$1.14-billion transaction.
At a rescheduled meeting held on Monday, 67.9% of votes cast were in favour, surpassing the required 66 2/3% threshold needed for approval.
The shareholder approval satisfies a key condition precedent for completing the acquisition, which had initially failed to garner enough support, prompting the rescheduling of the vote.
The deal remains subject to several customary closing conditions under the acquisition agreement. These include clearance under the Investment Canada Act (ICA) and obtaining a final order from the Supreme Court of British Columbia. The court hearing for the final order is expected on September 12, and Paladin continues to work towards securing the necessary ICA clearance.
The takeover is designed to help the Perth-based company become a global uranium leader, with assets stretching across three continents.
“We fully expect that the combination of our companies will create significant value for all shareholders. Fission’s Patterson Lake South project is a natural fit for Paladin, delivering medium term development potential to augment production from the recently restarted Langer Heinrich mine.
“With producing assets, a quality near term development project and a global portfolio of exploration assets, Paladin is well positioned to continue to deliver value for its shareholders from the structural demand shift for uranium driven by global decarbonisation,” commented Paladin CEO Ian Purdy.