Paladin gets security review notice from Canada on Fission Uranium deal

Australia’s Paladin Energy said it has received a notice from a Canadian ministry ordering a national security review of its acquisition of Canadian uranium explorer Fission Uranium for C$1.14-billion.

In June, the Australian uranium producer had announced it had entered an agreement to acquire Fission Uranium for an implied equity value of C$1.14-billion, following which shares of the company would be listed on the Toronto Stock Exchange.

Paladin is awaiting a final court order and clearance under the Investment Canada Act (ICA) to move ahead with the proposed acquisition.

The court decision relates to the legal proceedings brought forward by CGN Mining Company, which owns 11.26% stake in Fission, in relation to opposing the approval for the agreement.

“Accordingly, consideration of the arrangement (proposed deal) under the ICA has been extended and remains ongoing,” the company said in a statement on Wednesday.

Paladin said it is considering the Canadian Minister of Innovation, Science and Industry’s notice, exploring its available options and evaluating the prospects of obtaining ICA clearance in respect of the deal.