Bannerman Energy has launched a fully underwritten N$1.44 billion (A$124 million) share placement to fund its remaining share of the Etango Uranium Project’s development costs, positioning the Namibian project to move through construction and ramp-up without debt.
The Australian-listed uranium developer will issue approximately 31 million new shares at A$4.00 each to institutional and sophisticated investors, representing a 5.4% discount to Bannerman’s A$4.23 closing share price on 8 September.
Bannerman will also undertake a non-underwritten share purchase plan targeting up to N$115.9 million (A$10 million), potentially taking the combined equity raising to approximately N$1.55 billion if fully subscribed.
Bannerman Executive Chairman Brandon Munro said the equity raising, together with the expected investment from CNNC Overseas Limited (CNOL), would fully fund Etango through construction, production ramp-up and associated working capital requirements.
“It has been a transformational calendar year for Bannerman, particularly now that the Etango strategic financing transaction with CNNC/CNOL is unconditional and we have launched an underwritten equity raising which will see Etango fully funded through production and ramp-up, inclusive of working capital requirements,” Munro said.
The placement proceeds will primarily fund Bannerman’s 55% share of Etango’s remaining working capital requirements while providing additional funding headroom for construction, contingencies and growth initiatives, as well as corporate and transaction costs.
The capital raising follows confirmation that all conditions precedent to CNOL’s strategic investment and joint venture covering the funding, development and operation of Etango have been satisfied or waived.
Completion of the CNOL transaction and receipt of its investment are expected during September.
“This underwritten placement, in addition to the near-term investment by CNOL, means we are funded to deliver the development of Etango on a debt-free basis, financially de-risking construction and ramp-up,” Munro said.
He said the transaction also gives Bannerman access to CNOL’s project execution support while retaining market-priced exposure to uranium through the project’s offtake arrangement.
Under the proposed joint venture structure, Bannerman will retain a 55% interest in Etango, while CNOL will hold 45%.
CNOL will also purchase 60% of Etango’s uranium production under a market-based offtake arrangement.
Bannerman said its existing cash, proceeds from the equity raising, CNOL’s investment and the partners’ pro-rata working capital contributions are expected to fully fund Etango through construction and ramp-up without project debt.
The company expects to make a Final Investment Decision (FID) and begin full-scale construction during the fourth quarter of 2026.
Early construction works at Etango are already underway and are progressing in line with budget and schedule, according to Bannerman.
The funding package significantly advances Etango towards full-scale development as Bannerman prepares to move the uranium project from early works into construction later this year.
