Namibian Mining News The Professional Mining Journal
Related Articles
A$124M underwritten placement to fully fund Etango
Bannerman Energy has launched a fully underwritten placement to raise A$124 million (before costs) at an issue price of A$4.00 per share (placement), following the company’s recent announcement in relation to confirmation from CNNC Overseas Limited (CNOL) that all conditions precedent to completion of its strategic investment and joint venture for the funding, development and operation of the Etango Uranium Project (Etango Project or Etango) have been either satisfied or waived.
CNOL is part of a leading integrated global nuclear utility group, China National Nuclear Corporation (CNNC).
The proceeds from the placement are expected to fully fund Bannerman’s share of the residual working capital required to fund the Etango Project through construction and ramp-up, following completion of the transaction with CNOL.
In addition to the Placement, Bannerman will conduct a non-underwritten share purchase plan (SPP) to raise up to A$10 million.
“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,” said Bannerman’s Executive Chairman, Brandon Munro.
Munro said the company is rapidly progressing Etango towards first uranium production and delivering commitment to be the next large-scale greenfield uranium producer globally.
“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, while also having the benefit of securing CNOL’s strong execution support alongside fully market priced exposure to uranium through the flexible cornerstone offtake arrangement.
“This is a highly robust outcome that further emphasises the natural leverage to uranium price upside that Bannerman boasts by virtue of Etango’s large scale and expansion potential”
