Bannerman Energy raises $85m to further develop Etango uranium project in Namibia

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By Colin Hay - 
Bannerman Energy ASX BMN Etango uranium placement

Bannerman Energy’s (ASX: BMN) development plans for its Etango uranium project in Namibia have been boosted by a successful $85 million capital raising.

An early mover among the growing group of Australian miners attracted to Namibia’s uranium riches, Bannerman secured firm commitments from existing institutional and sophisticated investors for its two-tranche placement.

The new funds brought in by the successful raising will increase Bannerman’s cash reserves to approximately $100m.

Further progress

Funds raised from the offer will be applied towards the development of the Etango-8 project and general working capital.

“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 estimate processes,” said executive chair Brandon Munro.

“These have confirmed the high quality of technical evaluation and design from the December 2022 definitive feasibility study (DFS).”

FID the endgame

“We have commenced detailed design work and early works construction,” Mr Munro added.

“The placement will enable us to advance further works including the procurement and manufacturing of selected long-lead items, product marketing and project financing activities.”

“These activities are all directed towards advancing Etango to a targeted positive final investment decision (FID) during H2 2024.”

Detailed design

The next steps in the development of the Etango uranium project will include detailed design and early works such as construction infrastructure, earthworks and selected long-lead items.

The Etango-8 DFS confirmed the strong technical and economic viability of conventional open pit mining and heap leach processing of the Etango deposit at 8 million tonnes per annum throughput for an average annual output of 3.5 million pounds of uranium.

A March 2024 scoping study demonstrated the capacity to expand annual production to 6.7Mlbs.

Bannerman has further highlighted Etango’s potential with the construction and multi-year operation of a heap leach demonstration plant, which confirmed the company’s ability to utilise a conventional acid heap leach process on the Etango ore.

The company was awarded the mining licence for Etango in December 2023 and is progressing all key project workstreams in parallel with strengthening uranium market fundamentals.

Namibian land grab

Identified by the World Nuclear Association as having the capacity to provide 10% of the world’s uranium mining output, Namibia has become the target of a land rush on the back of a number of recent significant discoveries.

Other ASX-listed companies targeting Namibia’s uranium riches include Paladin Energy (ASX: PDN), Deep Yellow (ASX: DYL), Gibb River (ASX: GIB) and Elevate Uranium (ASX: EL8).