Bannerman Energy is on track to make a final investment decision (FID) on its Etango Uranium Project after completing a N$5.42 billion (US$321.5 million) strategic financing transaction with China’s CNNC Overseas Limited (CNOL), which is expected to close during the current quarter.
The Australian-listed uranium developer said progress had been made during the June quarter in meeting the remaining conditions required to finalise the joint venture agreement.
Once completed, CNOL, a subsidiary of the China National Nuclear Corporation (CNNC), will acquire a 45% stake in a newly established UK-based joint venture company, while Bannerman will retain the remaining 55%.
The transaction provides a debt-free funding solution for the construction of the Etango mine.
Under the agreement, CNOL will invest N$4.96 billion (US$294.5 million) into the joint venture at completion and pay a further N$455.2 million (US$27 million) directly to Bannerman to reimburse its share of project expenditure incurred since July 2025.
In return, CNOL will receive a life-of-mine offtake agreement covering 60% of Etango’s uranium production.
Bannerman Managing Director and Chief Executive Officer Gavin Chamberlain said the company was making solid progress towards completing the transaction and reaching FID.
“Our engagement with CNOL has been highly constructive and collaborative, reinforcing the strong alignment between the parties and our shared commitment to the successful development of Etango,” Chamberlain said.
“With the project footprint increasingly visible on site, engineering and infrastructure activities advancing to plan, and a clear pathway towards transaction completion and FID, Etango continues to build momentum from a position of strong project readiness.”
Construction activities at the project continue to advance on schedule and within budget.
The workforce has grown to more than 560 personnel, while the project has recorded 1.1 million lost-time injury-free hours.
Bulk earthworks are approximately 92% complete, with construction focused on the heap leach pad, process solution ponds and wet plant terraces.
Concrete works have reached 10,800 cubic metres, representing around 60% completion of the Phase 1 and 2A construction packages, while major processing facilities, including the primary crusher and secondary and tertiary crushing infrastructure, are now emerging above ground.
The company has also signed a permanent water supply agreement with NamWater, with the first phase of the pipeline now 87% complete.
A power supply agreement has been concluded with NamPower, while detailed engineering of the acid storage and handling facility at Walvis Bay is approximately 69% complete.
Detailed engineering for the dry plant has reached 94% completion, while the wet plant design is 28% complete, remaining on schedule for the release of final construction drawings later this year.
“The June quarter further demonstrated the discipline and methodical approach being applied to the development of Etango,” Chamberlain said.
“Early works continue to track to overall schedule and budget, reflecting the capability of our project team and contractors and the strong focus on execution risk.”
Bannerman ended the quarter with N$626 million (A$53.1 million) in cash and N$129 million (A$11.5 million) in liquid assets. The company also received a N$51.5 million VAT refund from the Namibian government.
The update comes as long-term uranium market fundamentals continue to strengthen. While the spot uranium price remained relatively stable at US$85.25 per pound during the quarter, the long-term contract price increased to US$97 per pound, supported by continued utility demand for secure and reliable uranium supply.
