KWM advises on sale of African uranium mine

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King & Wood Mallesons (KWM) has advised ASX-listed uranium miner Paladin Energy (Paladin) on the sale of its 85% stake in the Kayelekera mine in Malawi to a joint venture led by ASX-listed Hylea Metals Limited (Hylea). The transaction will see Paladin receive A$10M in value as well as the return of US$10M that is currently securing Kayelekera's environmental performance bond with the Government of Malawi.

The sale of a non-core asset will enable Paladin to prioritise its capital and other resources to optimise and restart its Langer Heinrich Mine in Namibia.

Cross border M&A partner Paul Schroder led the KWM team. Paul was supported by banking partner, Nathan Collins, intellectual property partner, Scott Bouvier, senior associate, Peixin Truong, solicitors, Stephanie Rigg and Rianne Chen and associate, Kenny Cheok.

Commenting on the deal, Paul Schroder said: "We are delighted to be able to support Paladin once again on this important cross-border transaction. This is one of a number of African resources M&A transactions we are working on at the moment and we are optimistic about the future of the sector."

The sale is subject to the approval of the Government of Malawi, Hylea shareholders and holders of Paladin's US$115M secured notes listed on the Singapore Stock Exchange. It is expected to complete in late 2019.