Uranium producer Paladin Energy said Monday it has drawn $127 million from a financing facility, to reimburse costs from the expansion at its Langer Heinrich project in Namibia.
Paladin, which has access to $141 million from the facility, said the funds will be used to reimburse Paladin's existing cash reserves, which the company has been using for the expansion of stage 3 of the project.
The undrawn $7.8 million will be used for remaining construction expenditures, the company said in a statement.
Last month, the Perth, Australia-based miner said it signed a financing agreement with a syndicate of banks and added that it plans to fund initial development at the project through existing cash reserves.
Shares of the world's No. 2 uranium producer Cameco Corp were down about 2 percent at C$20.75, while Vancouver-based Uranium One shares were trading down 4 percent at C$2.26 on the Toronto Stock Exchange.
Paladin's Toronto-listed shares were trading down about 8 percent at C$1.71 -- a three-year low -- on the Toronto Stock Exchange.