Bannerman Energy has completed a N$5.26 billion (US$320.4 million) strategic financing transaction with China National Nuclear Corporation Overseas Limited (CNOL), clearing a key funding hurdle for the development of its Etango uranium project in Namibia.
The transaction, completed on 24 September 2026, includes a N$4.84 billion (US$294.5 million) investment in Bannerman Energy (UK) Ltd, the joint venture company established for the project, and a N$425.5 million (US$25.9 million) reimbursement to Bannerman for project expenditure.
Bannerman said the financing is expected to allow Etango to be developed without project debt, with the company and CNOL funding future capital expenditure and operating costs on a 55% and 45% basis, respectively.
“We are delighted to have finalised our long-term strategic partnership with the CNNC Group. This landmark project funding and joint venture arrangement is a powerful enabler of the successful construction, ramp-up and operation of the world-class Etango Uranium Project,” Bannerman Executive Chairman Brandon Munro said.
Under the partnership, CNOL will also purchase 60% of Etango’s yellowcake production over the life of the mine on arm’s-length, market-based terms, while Bannerman will market the remaining 40%.
Following completion of the transaction, the joint venture has approximately N$4.48 billion (US$303 million) in cash, while Bannerman has pro-forma cash of about A$174 million, excluding liquid investments and cash held by the joint venture.
The Etango project, located in Namibia’s Erongo Region, is designed to process eight million tonnes of ore annually and produce an average of 3.5 million pounds of uranium oxide a year. Bannerman has also identified potential to expand annual production to 6.7 million pounds.
The company is targeting a Final Investment Decision (FID) and the start of full-scale construction in the fourth quarter of 2026.
“Completion of this strategic funding agreement clears the path for targeted FID on Etango before year end, with commencement of full-scale construction set to position it as the next major greenfield uranium project globally to enter production,” Munro said.
Following the transaction, Bannerman holds a 55% interest in the joint venture, with CNOL holding the remaining 45%.
The joint venture holds a 95% interest in Etango, giving Bannerman an underlying economic interest of 52.25%, CNOL 42.75% and the One Economy Foundation 5%.
