KWM helps ASX-listed miner unload uranium mine in Africa

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King & Wood Mallesons (KWM) has advised an ASX-listed miner sell off a uranium mine in Africa.

The global firm advised Paladin Energy in its sale of its 85% stake in the Kayelekera Mine in Malawi to a joint venture led by ASX-listed Hylea Metals.

With the deal, Paladin receives $10m and will also recover a US$10m bond securing the mine’s environmental performance with the government of Malawi. KWM said that the sale of the non-core asset frees up resources to optimise and restart Paladin’s Langer Heinrich Mine in Namibia.

KWM fielded a cross-border team headed by M&A partner Paul Schroder to act on the transaction. He was supported by banking partner Nathan Collins, IP partner Scott Bouvier, senior associate Peixin Truong, associate Kenny Cheok, and solicitors Stephanie Rigg and Rianne Chen.

“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,” Schroder said.

The deal, expected to close late this year, is subject to approval from the government of Malawi, Hylea shareholders, and holders of Paladin’s US$115m secured notes listed on the Singapore Stock Exchange, KWM said.