Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Bannerman Resources has raised A$4-million through a share placement to institutional and sophisticated investors to advance work at the Etango uranium project, in Namibia.
Some 133.3-million shares, at a price of 3c each, were issued to raise the capital.
Bannerman said on Friday that the placement price represented a 13.5% discount to the 15-day volume-weighted average price of Bannerman shares.
“We are delighted with the strength of the response to our placement offering. It is a testament to the quality of the Etango project and its outstanding position to capitalise on an expected rebound in uranium market prices over the coming years,” said Bannerman CEO Brandon Munro.
Funds will be used for internal and external engineering designed to assess and quantify opportunities to reduce Etango’s operating and capital cost estimates arising from the successful heap leach demonstration programme.
Based on average yearly production of 7.2-million pounds of uranium oxide over an initial mine life of 15.7 years, the Etango project is expected to have a net present value of $419-million and a post-tax internal rate of return of 15%.