Uranium producer Paladin Energy has secured a US$141mn project finance facility to develop the stage three expansion of its Langer Heinrich uranium mine in Namibia.

The six-year facility is being provided by Société Générale as agent and lead bank, and Nedbank Capital, Standard Bank, Barclays Capital and Rand Merchant Bank as arrangers.

Standard Bank tells GTR that the loan has a six-year tenor and is priced at 375 basis points to the completion of the project, 325 basis points post completion, and 350 basis points in the final year of the facility.

Drawdown on the financing is subject to fulfilment of conditions, Paladin says.

The facility also consists of a cost overrun facility of US$6mn.

The banks provided an equal share of US$27mn in the loan, and US$1.2mn each on the cost overrun facility, Standard Bank confirms to GTR.

Stage three of the mine will increase the production of uranium to 5.2 million pounds per year from its current capacity of 3.7 million pounds per year, and will reach nameplate capacity in the first quarter of 2012.