Bannerman Energy has secured N$1 billion (A$85 million) to progress the development of its Etango-8 Uranium Project located in Namibia.
The funds were raised through a placement of new shares, attracting commitments for 25.8 million shares at N$40 (A$3.30) per share.
According to Bannerman’s Executive Chairman, Brandon Munro, the company plans to utilize the proceeds for detailed design work, early works encompassing construction and earthworks, and general working capital.
“We have commenced detailed design work and early works construction, and the placement will enable us to advance further works including the procurement and manufacturing of select long-lead items, product marketing, and project financing activities. These activities are all directed towards advancing Etango to a targeted positive Final Investment Decision (FID) during H2 2024,” he said.
He added that the placement process garnered support from both new and existing institutional and sophisticated investors and will be done in two parts.
The first tranche of 22,927,010 shares will be issued immediately, raising N$915 million (A$75.7 million).
The second tranche of 2,830,765 shares requires shareholder approval at a meeting in August and is expected to raise N$112 million (A$9.3 million).
“We are excited by the support that we have received from investors for both our Etango-8 development pathway and the approach the Company has taken to stewarding this asset into the rapidly strengthening uranium market environment. I would also like to welcome our new shareholders through the raising and look forward to building a strong relationship with them,” Munro said.
The company anticipates having approximately N$1.2 billion (A$100 million) in cash reserves after covering placement costs.
In December 2022, a comprehensive feasibility study confirmed the viability of using open-pit mining and a heap leach process to extract uranium from the Etango deposit at a rate of 8 million tonnes per annum, resulting in an average annual output of 3.5 million pounds of uranium oxide concentrate (U3O8).
More recently, in March 2024, a separate study indicated the potential to increase annual production to 6.7 million pounds of U3O8.-miningandenergy.com.na
