Paladin to sell mine stake

Shares in Paladin Energy Ltd have jumped after it announced the sale of its 25% equity stake in the Langer Heinrich uranium mine in Namibia to China Uranium Corporation Limited for $US190 million ($A216.7 million).

At 1050 AEDT, Paladin shares jumped 8.48% to 60.75 cents. The shares hit 65.5 cents in earlier trade.

China Uranium Corporation Limited is a wholly-owned subsidiary of China National Nuclear Corporation (CNNC).

In a statement to the Australian Securities Exchange, Paladin said the respective boards of Paladin and CNNC have approved the transaction.

"Completion is subject only to certain Chinese regulatory approvals (including the National Development and Reform Commission), which are expected to be obtained by mid-2014, and routine consents for the transaction from Paladin’s project financiers and the Bank of Namibia," the company said.

CNNC has agreed to pay a US$20 million non-refundable deposit to Paladin, the statement said.

"The offtake component of the agreement will allow CNNC to purchase its pro-rata share of product at the prevailing market spot price. There is also an opportunity for Paladin to benefit by securing additional long term offtake arrangements with CNNC, at arm’s length market rates, from Paladin’s share of Langer Heinrich production," Paladin said.