Bannerman Energy has completed the bookbuild for a fully underwritten A$124 million institutional placement, providing the company with funding expected to support its Etango Uranium Project in Namibia through construction and ramp-up.
The placement consists of approximately 31 million new shares priced at A$4.00 per share, raising A$124 million before costs. Bannerman said it received strong demand from existing shareholders as well as new domestic and international institutional investors.
The capital raise follows Bannerman’s announcement that all conditions precedent related to its strategic investment and joint venture with CNNC Overseas Limited, or CNOL, for the funding, development and operation of Etango had been satisfied or waived.
Together with Bannerman’s existing cash, upcoming CNOL subscription and reimbursement payments, and CNOL’s pro rata working capital contributions, the placement is expected to fully fund Etango through construction and ramp-up without debt.
Bannerman is also undertaking a non-underwritten share purchase plan targeting up to an additional A$10 million. Eligible shareholders in Australia and New Zealand can apply for up to A$30,000 of shares at the same A$4.00 per-share price as the institutional placement.
Settlement of the institutional placement is expected on September 15, with the new shares expected to be allotted September 16. The share purchase plan is scheduled to open September 18 and close October 2.
Macquarie Capital and Canaccord Genuity acted as joint lead managers, joint underwriters and joint bookrunners. Jett Capital Advisors served as co-lead manager, while Shaw and Partners, Euroz Hartleys and Wallabi Group acted as co-managers. Johnson Winter Slattery and Fivemark Partners served as legal and strategic advisers, respectively.
Etango is Bannerman’s flagship uranium development project in Namibia’s Erongo Region. The project has undergone more than 15 years of exploration and feasibility work, with a 2022 definitive feasibility study outlining an 8 million-tonne-per-year operation producing an average 3.5 million pounds of U3O8 annually. A subsequent scoping study demonstrated potential to expand annual production to 6.7 million pounds of U3O8.
Bannerman received the Etango mining license in December 2023 and is targeting a final investment decision in the fourth quarter of 2026.
KEY QUOTES:
“We are delighted with the support from our existing and new shareholders. The quality of the participating investors is a powerful endorsement of the Etango project and our corporate strategy.”
“This capital raising resolves the last funding hurdle for Bannerman as we move towards a Final Investment Decision on the Etango uranium mine and progress to becoming a major new greenfield uranium producer. With Etango construction now fully funded, with no debt, a worldclass partner and with all of our working capital obligations backed by a strong balance sheet, Bannerman is exceptionally well positioned for the next phase of development. We look forward to progressing Etango towards a Final Investment Decision – expected in Q4 2026 – alongside our partner, CNOL, and to delivering value for both existing and new shareholders who have supported the Company through this important milestone.”
Brandon Munro, Executive Chairman of Bannerman Energy
