Perth-based Bannerman Resources has raised $8 million in a heavily oversubscribed placement for development of its 95 per cent-owned Etango uranium project in Namibia.
Etango, one of the world’s largest undeveloped uranium projects, already has a definitive feasibility study (DFS). It is expected to produce 7-9 million pounds (Mlb) of uranium for its first five years of operation and 6-8Mlb per year thereafter.
The project is near Rio Tinto’s Rössing uranium mine, which has been operating since 1976 and is the world’s longest running open pit uranium mine.
Bannerman’s placement involved just under 174 million shares at a price of $0.046 cents per share, a 9.2 per cent discount to the company’s 10-day volume weighted average price (VWAP) up to June 5.
The funds will be used primarily to optimise Etango by reducing operating and capital costs and update its DFS; funds will also contribute to marketing and general working capital.
The DFS update is expected to integrate improvements identified by the company since the DFS was first produced in 2012.
A DFS optimisation study produced in late 2015 identified JORC compliant reserves of 303.3Mt at an average grade of 195 parts per million (ppm) for 130.1Mlbs of contained uranium.
Bannerman chief executive officer Brandon Munro said, “I am delighted with the strong level of support shown from existing shareholders in the equity raising. I am also pleased to welcome more than an dozen new institutional investors onto the Bannerman register.”