Bannerman Energy has secured an investment of up to N$5.12 billion (US$321.5 million) from CNNC Overseas Limited (CNOL) to fund, develop and operate the Etango Uranium Project in Namibia.
The agreement establishes a joint venture between Bannerman and CNOL, a subsidiary of China National Uranium Corporation (CNUC), which forms part of China National Nuclear Corporation (CNNC).
Under the transaction, CNOL will acquire a 45% stake in Bannerman Energy (UK) Ltd, the joint venture company that owns 95% of the Etango Project. Bannerman will retain 55% ownership, while the Namibian social welfare organisation One Economy Foundation (OEF) will continue to hold a 5% loan-carried interest at project level.
Bannerman Executive Chairman Brandon Munro said the agreement marks the culmination of a multi-year funding process.
“The execution of this documentation represents the culmination of the extensive Etango funding workstream we have undertaken over the past two years. In short, we believe that this transaction delivers the optimised finance solution for the development of Etango and provides ideal support to our broader aspirations in the uranium business,” Munro said.
A key feature of the transaction is that it enables the debt-free construction of the Etango mine, reducing financial risk during construction and ramp-up while providing greater operational flexibility.
Of the total investment, N$4 billion (US$294.5 million) will be injected directly into the joint venture through equity and shareholder loans. In addition, up to N$429 million (US$27 million) will be paid to Bannerman to reimburse CNOL’s 45% share of project-related expenditure incurred between 1 July 2025 and transaction completion.
Both parties have agreed to fund future capital expenditure and operating costs in proportion to their ownership stakes, with Bannerman contributing 55% and CNOL 45%, maintaining long-term alignment between the shareholders.
“By enabling the debt-free construction of Etango, this solution maximises flexibility and dramatically derisks the construction and ramp-up phases of project execution. It also delivers us a Tier-1 cornerstone offtake partner on genuine and market terms, ensuring Bannerman remains strongly exposed to future uranium price upside potential,” Munro said.
As part of the agreement, CNOL has secured a life-of-mine entitlement to purchase 60% of Etango’s uranium production. The uranium will be sold on arm’s-length, market-based pricing terms linked to spot and term uranium price indices, with pricing formulas subject to periodic review.
Bannerman will independently market the remaining 40% of production.
The transaction is targeted for completion in mid-2026, subject to regulatory approvals in Namibia and China, including clearance from the Namibian Competition Commission and shareholder approval from CNUC. Amendments to existing funding agreements and the execution of key infrastructure supply contracts are also required.
Munro said the investment provides strong validation of the project’s quality and development readiness.
“The appetite of CNNC to invest in this manner delivers strong validation of the world-class nature of the Etango Project, the quality of technical study work undertaken by Bannerman over the past almost 20 years and the extensive derisking undertaken in recent years. This investment and funding agreement represents the final key hurdle to project development and positions Etango as the next major greenfield uranium project globally to enter production,” he said.
Early construction works at Etango are expected to continue through the first half of 2026, with a final investment decision anticipated shortly after transaction completion.
CNNC is one of the world’s largest uranium consumers and is expanding its nuclear power programme, with 18 reactor units under construction or approved.
Through its subsidiaries, the group already holds a significant presence in Namibia, including a 68.62% majority stake in the Rössing Uranium Mine and a 25% interest in the Langer Heinrich Mine.
