PERTH (miningweekly.com) – Uranium developer Bannerman resources will raise A$8-million through the placement of more than 173.9-million shares to institutional and sophisticated investors.
The placement will be priced at 4.6c a share, representing a 9.2% discount to the company’s ten-day volume weighted average price.
“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 a dozen new institutional investors to the Bannerman register,” said CEO Brandon Munro.
The placement will be completed in one tranche under the company’s existing capacity, and will not require shareholder approval.
Bannerman said on Friday that funds raised from the share placement will be used to further optimise the Etango project, in Namibia, progress the current definitive feasibility study update, continue product marketing, as well as for general working capital.
Bannerman in April this year flagged ‘substantial’ operating cost reductions at the Etango mine, following a membrane study that tested the effectiveness of five different membrane types on two different solution streams, both generated from the Etango heap-leach demonstration plant.