Bannerman continuing discussions with China’s Hanlong

31st August 2011 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) − Uranium hopeful Bannerman Resources on Wednesday told delegates at the Africa Downunder conference that it was still engaging in discussions with its Chinese suitor Hanlong Mining, along with other potential development partners.

CEO Len Jubber said that the company was exploring “all options to deliver the best possible outcome for shareholders”.

Privately owned Hanlong bid A$143-million for the ASX- and TSX-listed firm on July 10, by offering A$0.612 cash per share. However, Bannerman declined its request for three months of exclusive talks saying the offer was too conditional.

Some of the key conditions of the offer include Hanlong concluding a due diligence by the end of September, as well as major shareholder approval, board recommendation and the continuity of Bannerman senior management.

Bannerman has previously reported that its discussions with Hanlong could take “some months”.

Bannerman is the owner of the Etango uranium project, on which a feasibility study would be completed by the end of March.

As part of the study, the company is investigating increasing the plant’s throughput by 33%, which would result in a 20% production increase to between six-million and eight-million pounds a year, up from the original estimate of between five-million to seven-million pounds a year.