PERTH (miningweekly.com) – Uranium developer Bannerman Resources has entered into a subscription agreement with Namibian company One Economy Foundation, which will become a 5% loan-carried shareholder in the Etango project.
As part of the subscription agreement, Bannerman will issue 5% of its ordinary share capital to the not-for-profit organisation. The One Economy Foundation will be loan carried for all future project expenditure, including pre-construction and development expenditure, with the loan capital and accrued interest repayable from future dividends.
Bannerman CEO Brandon Munro on Tuesday said the Namibian ownership cemented a key pillar of Bannerman’s corporate social responsibility in that country.
“The One Economy Foundation’s mission and approach is closely aligned with Bannerman’s record as a leader in corporate social responsibility.
“Further, this initiative is closely aligned with the Namibian government’s poverty eradication objectives under the Harambee Prosperity Plan and associated role that the Ministry of Mines and Energy is playing in this regard,” said Munro.
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%.
A definitive feasibility study estimates the project will cost about $870-million to develop.