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  • Paladin Energy (PDN) has denied reports of another uranium spill at the Kayelekera mine in Malawi
  • The mine has reported two uranium spills in the past, one in 2014 and another in 2015
  • Due to the heavy rainfall, runoff water form Kayelekera has spilt into the surrounding environment
  • However, the company stated the World Health Organisation has been monitoring the runoff and uranium levels fall within safe limits
  • Alongside this news, Paladin has completed the sale of Kayelekera to Lotus Resources and Lily Resources for $5 million
  • But after the uranium spill, the company is required to pay Lotus over $3 million for site restoration and water treatment
  • Paladin Energy (PDN) is down 8.77 per cent with shares currently trading for 5.2 cents

Paladin Energy (PDN) has denied reports of another uranium spill at the recently sold Kayelekera mine in Malawi.

In a letter released today, the company stated that Malawi media, claiming a uranium spill, are inaccurate.

On March 5, heavy rainfall at the mine site caused runoff water to spill over and into the environment. Paladin claims the runoff has been measured and analysed by the World Health Organisation and falls within safe limits.

Therefore, the company denies there has been an environmental or community impact.

Paladin also stated that, while tailings levels were also high, they were well within safe limits and there have been no tailing releases.

Where the media reported originated from remains unclear.

The mine has reported two uranium spills in the past, one in 2014 and another in 2015.

Alongside this news, Paladin has successfully sold the Kayelekera mine to Lotus Resources and Lily Resources. The sale was valued at $5 million in cash and shares.

Paladin is also eligible for a 3.5 per cent royalty on future production at Kayelekera.

However, due to the recent rainfall, Paladin is required to pay Lotus $3.24 million for site restoration and water treatment.

Paladin CEO, Ian Purdy did not comment on the spillage allegations, but did share his view of the sale.

“The completion of the sale is a positive step forward for Paladin and one which will deliver significant financial benefits to the company.

“We are also pleased to be a major shareholder of Lotus Resources Limited and look forward to their future success in adding value to the Kayelekera mine in Malawi,” he said.

Paladin Energy is down 8.77 per cent with shares currently trading for 5.2 cents.

PDN by the numbers
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