Bannerman raises N$1 billion for Etango

Australian miner Bannerman Energy has completed a private placement that will allow it to advance its Etango uranium mine, amounting to A$85 million, or N$1 billion.

“Proceeds from this placement will enable us to further progress our Etango-8 project, following positive outcomes from the recently announced front-end engineering and design and control budget estimates processes, which confirmed the high quality of technical evaluation and design from the December 2022 definitive feasibility study,” Bannerman CEO Brandon Munro said.

Giving a breakdown, Munro explained that the proceeds from the placement, in addition to cash on hand, will be applied towards development of the Etango uranium project, which includes a detailed design, early works, including construction infrastructure, earthworks and selected long-lead items. The remainder would be allocated towards general working capital up until 30 June 2026.

The placement would also help Bannerman reach a targeted investment investment decision within 2024, he explained.

“We have commenced detailed design work and early works construction, and the placement will enable us to advance further works including the procurement and manufacturing of select long-lead items, product marketing and project financing activities. These activities are all directed towards advancing Etango to a targeted positive final investment decision during the second half of 2024."

“The Etango mining licence application was granted in December 2023. This key milestone was followed swiftly by the commencement of early development works at Etango, with the awarding of two contracts to local Namibian businesses for the construction of a temporary water pipeline and access road,” the company previously said in an update to the market.

A scoping study anticipated the creation of 760 jobs, with Etango's life of mine set to span 15 years.