Bannerman Energy (ASX:BMN) has launched a fully underwritten placement to raise $124 million at $4.00 per share.
The announcement follows the company’s confirmation that all conditions for its strategic partnership with China National Nuclear Corporation subsidiary CNNC Overseas (CNOL) have been satisfied, with completion expected this month (September 2026).
The placement, alongside a non-underwritten share purchase plan targeting up to $10 million, aims to cover Bannerman’s 55% share of residual working capital requirements for the Etango Uranium Project in Namibia through construction and ramp-up.
Post completion, a final investment decision and full-scale construction on the project are expected during Q4 2026.
Executive Chairman Brandon Munro says the placement aims to see Etango fully funded through production and ramp-up, inclusive of working capital requirements.
“This underwritten placement, in addition to the near-term investment by CNOL, means we are funded to deliver the development of Etango on a debt-free basis, financially de-risking construction and ramp-up, while also having the benefit of securing CNOL’s strong execution support alongside fully market-priced exposure to uranium through the flexible cornerstone offtake arrangement,” Munro says.
“This is a highly robust outcome that further emphasises the natural leverage to [the] uranium price upside that Bannerman boasts by virtue of Etango’s large scale and expansion potential.”
The $4.00 placement price represents a 5.4% discount to the last closing price of $4.23 on 8 September. Settlement is scheduled for 15 September, with new shares to be allotted on 16 September.
Macquarie Capital and Canaccord Genuity are acting as joint lead managers, joint underwriters, and joint bookrunners for this transaction, while Jett Capital Advisors is acting as co-lead manager.
Under the joint venture, CNOL will fund post-completion capex and operating costs pro rata to its 45% equity interest, as well as purchase 60% of Etango’s production under market-based pricing terms.
A December 2022 Definitive Feasibility Study for Etango confirmed conventional open pit mining and heap leach processing at 8 million tonnes per annum throughput for an average annual output of 3.5 million pounds of uranium oxide.
Bannerman says early works construction activities are tracking in line with budget and schedule.
Bannerman Energy is a uranium developer with its flagship Etango Project located in the Erongo region of Namibia.
Write to Paula Fabe at Mining.com.au
Images: Bannerman Energy
