Bannerman Energy Raises A$85 Million to Advance Etango-8 Uranium Project
Australia-listed uranium junior Bannerman Energy announced on Friday a placement to raise A$85 million for the continued development of its Etango-8 project in Namibia.
The two-tranche placement consists of 25.8 million new fully paid ordinary shares issued to new and existing institutional and sophisticated investors at a price of A$3.30 each. Upon completion, Bannerman will have about A$100 million in cash reserves.
“Proceeds from this placement will enable us to further progress our Etango-8 project, following positive outcomes from the recently announced front-end engineering design (FEED) and control budget estimates (CBE) processes, which confirmed the high quality of technical evaluation and design from the December 2022 definitive feasibility study (DFS),” commented Executive Chairperson Brandon Munro.
The funds will be used for detailed design work, early works construction, placement and manufacturing of selected long-lead items, product marketing, and project financing activities.
These efforts are aimed at advancing Etango towards a targeted positive final investment decision during the second half of the year.
“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,” added Munro.
The recently completed FEED and CBE processes have refined the outcomes of the 2022 DFS, enhancing the accuracy of key cost estimates.
As a result, the CBE preproduction capital forecast has risen by $36 million, or 11.3%, from the DFS estimate to $353.5 million. The increase is driven by design changes and the impacts of inflation.
With a nameplate capacity of eight million tonnes a year, the Etango project is expected to have a mine life of 15 years, producing 52.6 million pounds of uranium oxide, averaging 3.5 million pounds annually.
