Paladin Energy has announced that it will allow an independent valuation process for the sale of its 75% interest in the Langer Heinrich Mine (LHM) to CNNC Overseas Uranium.
In March, Paladin started arbitration proceedings against CNNC, claiming that no 'event of default' had occurred under the LHM shareholders' agreement.
Several concessions were deliberated during the discussions CNNC held with Paladin Energy, which could benefit Paladin.
Ideas for an alternative solvent restructuring proposal regarding Paladin also featured during these discussions.
The decision to allow the valuation has been arrived at taking into consideration several aspects such as the expected valuation range for its interest in LHM, stakeholders' attitude to a protracted arbitration, and the possibility of an alternative solvent restructuring proposal.
The valuation process is being undertaken by an independent international investment bank, and scheduled to take five to six weeks.

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By GlobalDataAfter completion of the valuation process, CNNC has 30 days to exercise the option of acquiring Paladin's interest in LHM, in accordance with the LHM shareholders' agreement.
The option also includes the right to buy one or both of the company's shareholder loan of around $251m at its full face value, and its equity in LHM.
Paladin is seeking to finalise an alternative valid solvent restructuring to be implemented in the event CNNC acquires its stake in LHM.
The valuation process was agreed to after the announcement by Paladin that it does not admit the validity of CNNC’s claims and prejudice to its rights under the agreement.