Bannerman Energy Ltd. will raise AU$124 million through a share placement to fully fund its Etango uranium project in Namibia.
Under the institutional placement, Bannerman will issue roughly 31 million new shares at AU$4 per share. The company is also offering a non-underwritten share purchase plan (SPP) to eligible shareholders to raise up to an additional AU$10 million at the same issue price.
The capital raise follows confirmation that all conditions precedent have been satisfied or waived for a joint venture with CNNC Overseas Limited (CNOL), a subsidiary of state-owned nuclear giant China National Nuclear Corporation (CNNC).
Completion of the CNOL transaction is slated for September 2026, setting up a final investment decision (FID) and the start of full-scale construction in the fourth quarter of 2026.
Combined with existing cash reserves, CNOL’s incoming equity subscription, and pro-rata working capital contributions, the equity placement fully funds Bannerman’s 55 per cent share of residual working capital for Etango on a debt-free basis.
Under the joint venture, CNOL will hold the remaining 45 per cent stake and purchase 60 per cent of production under a market-priced offtake agreement.
Bannerman Executive Chairman Brandon Munro said: “It has been a transformational calendar year for Bannerman.
“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.
“We look forward to welcoming new shareholders to our register as we rapidly progress Etango towards first uranium production and deliver on our commitment to be the next large-scale greenfield uranium producer globally.”
The Etango tenement possesses a globally large-scale uranium mineral resource.
In December 2022, a definitive feasibility study was completed on the Etango-8 Project, confirming the strong technical and economic viability of conventional open pit mining and heap leach processing of the Etango deposit at 8Mtpa throughput.
Early construction works at the site remain on budget and schedule. Settlement of the placement shares is expected on September 15.