IT IS not the best of times for a uranium producer to be patter the market for fresh funding but that is what ASX-listed African uranium producer Paladin Energy is doing, in search of up to $70 million from an institutional placement of shares.
The funds are needed to strengthen the group's balance sheet to "ensure the company is well placed to meet all future commitment and pursue recognized growth options"" it was not inspiring stuff from a company whose share price has been trashed because investor confidence in uranium stocks was undermined by the incomplete meltdown at Japan's Fukushima nuclear plant in March.
Expansion at the group's Langer Heinrich mine in Namibia and the improvement of the Kayelekera mine in Malawi have also cause some headaches, fundamental to the group's 74 per cent share price fall.
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