Paladin Energy’s recapitalisation plans, which have been flagged...

Paladin Energy’s recapitalisation plans, which have been flagged by this column, were announced late last week, but the struggling uranium miner did not name the group offering it a lifeline.

DataRoom can reveal that it is in fact China National Nuclear Corporation, which has invested into the company at asset level.

CNNC is buying an additional 24 per cent in the Langer Heinrich mine in the Namib Desert in western Namibia for $US175 million ($234.4m).

Interestingly, after an initial rally in Paladin last week on the news, the lack of clarity surrounding the details of a recapitalisation plan in the official announcement on Thursday soon sent its shares south, and as a result, the group was placed in a trading halt on Friday.

This column flagged in March that talks were afoot between China National Nuclear Corporation and China General Nuclear Corporation on a recapitalisation plan for the company.

CNNC previously owned 25 per cent of Paladin’s Langer Heinrich, which is its principal mine.

One of the problems for Paladin is that the agreement by CNNC is non-binding.

This means that the Chinese entity could walk away at any stage.

Paladin is also striking a deal with MGT Resources for it to
buy 75 per cent of its Manjingee mine.

All up, both deals will net the business in excess of $US200m and enable Paladin to successfully refinance its convertible bonds due in 2017, worth $US237m.

It is understood that the group’s next major debt liability is due in 2020.