Paladin Energy’s quest for Fission Uranium has hit a speed bump after the Canadian government decided to have a look into Chinese attempts to block the $1.5 billion deal.
Paladin informed investors on Wednesday that Canadian industry minister Francois-Philippe Champagne had ordered “a national security review” into potential interference by the state-owned China General Nuclear Power Corporation.
A timeframe for the review to be complete is unclear. The deal is also subject to a Supreme Court of British Columbia ruling sometime in “the coming weeks”.
CGNPC, which owns 11.3 per cent of Toronto-listed Fission, attempted to block Paladin’s acquisition at a shareholder meeting last month.
The attempt failed and Paladin secured 67.9 per cent of the votes cast in favour — scraping past the 66.6 per cent threshold.
Paladin first made the buyout move for Fission in June and the deal was originally meant to be wrapped up last month.
Another Chinese state-owned entity, China National Nuclear Corporation, controls 25 per cent of Paladin’s flagship Langer Heinrich mine in Namibia.
Paladin switched production back on at Langer Heinrich in April. It also owns two exploration projects in Australia, including the Manyingee project located in the north west WA.
Paladin chief executive Ian Purdy has said Fission is a “natural fit” for its portfolio via the PLS project in Canada.
“The acquisition of Fission, along with the successful restart of our Langer Heinrich Mine, is another step in our strategy to diversify and grow into a global uranium leader across the top uranium mining jurisdictions of Canada, Namibia and Australia,” he said in June.
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