Bannerman Energy has announced an $85 million placement to further develop its Etango-8 uranium project in Namibia. This Australia-listed junior uranium company aims to advance its operations following positive results from recent engineering and budget evaluations.
The two-tranche placement includes 25.8 million new fully paid ordinary shares sold to institutional and sophisticated investors at A$3.30 each. Upon completion, Bannerman will have approximately A$100 million in cash reserves.
“Proceeds from this placement will enable us to progress our Etango-8 project. The recently announced front-end engineering design (FEED) and control budget estimates (CBE) confirmed the high quality of technical evaluation and design from the December 2022 definitive feasibility study (DFS),” said executive chairperson Brandon Munro.
The funds will support detailed design work, early construction, and the procurement of long-lead items. Additionally, the money will help with product marketing and project financing activities, moving Etango towards a targeted positive final investment decision in the latter half of the year.
“We are excited by the support from investors for our Etango-8 development pathway and our approach to advancing this asset in the strengthening uranium market,” Munro added.
The recent FEED and CBE processes have refined the 2022 DFS outcomes, improving accuracy and updating key cost estimates. The CBE preproduction capital forecast has risen by $36 million, or 11.3%, to $353.5 million, driven by design changes and inflation impacts.
The Etango project, with a nameplate capacity of eight million tonnes per year, is expected to have a mine life of 15 years. It aims to produce 52.6 million pounds of uranium oxide, averaging 3.5 million pounds annually.
Bannerman Energy’s efforts to secure substantial funding demonstrate its commitment to advancing the Etango-8 project. The project is significant in the context of the global uranium market, which is experiencing renewed interest and demand. The company’s strategic planning and investor support position it well to meet future energy needs.
Namibia, known for its rich uranium deposits, is a key player in the global uranium market. The development of projects like Etango-8 is crucial for the country’s economy and the broader energy sector. The successful advancement of this project will not only benefit Bannerman Energy but also contribute to Namibia’s economic growth.
The Etango-8 project has undergone extensive evaluation and planning, ensuring that all technical and financial aspects are meticulously addressed. The positive outcomes from the FEED and CBE processes highlight the project’s potential and the robustness of Bannerman’s approach.
Bannerman’s strategic focus on detailed design and early works construction reflects its commitment to timely project execution. The company’s efforts to engage with investors and secure necessary funding underscore its proactive approach to project management.
The global uranium market is witnessing a resurgence, driven by increasing demand for clean energy sources. Bannerman Energy’s Etango-8 project aligns with this trend, positioning the company as a significant player in the market. The project’s success will reinforce Bannerman’s reputation and enhance its market presence.
Bannerman’s clear vision and strategic planning are key to navigating the complexities of the uranium market. The company’s focus on technical excellence and investor engagement ensures that it remains at the forefront of industry developments. The Etango-8 project is a testament to Bannerman’s dedication to contributing to the global energy transition.
With a well-defined roadmap and robust investor support, Bannerman Energy is well-equipped to advance the Etango-8 project. The company’s commitment to excellence and strategic planning will play a pivotal role in achieving its project goals. The successful execution of this project will mark a significant milestone in Bannerman’s journey and contribute to the broader energy sector’s growth.
Source: Mining Weekly
