Photo by: Bloomberg
PERTH (miningweekly.com) – Triple-listed Bannerman Energy will raise A$40.7-million in a single tranche share placement to fund the completion of the Etango-8 definitive feasibility study (DFS), as well as front-end engineering design (FEED) on the Namibian project.
Bannerman on Thursday said that it would place 185-million shares, at a price of 22c each, to institutional and sophisticated investors, under the company’s existing placement capacity.
The offer price of 22c a share is a 17% discount to Bannerman’s last closing price on March 22, and an 11.3% discount to the company’s five-day volume weighted average share price.
In addition to the share placement, the company will also launch a share purchase plan (SPP), aimed at raising a further A$5-million. The SPP will allow shareholders to subscribe for up to A$30 000 of additional shares, also priced at 22c each.
The SPP will open on April 4 and close on April 19.
“Proceeds from this equity raising will enable us to complete the Etango-8 DFS and proceed directly to FEED and detailed design works for the Etango-8 mine. Our ability to quickly commit to these FEED works delivers us maximum project advancement flexibility and provides greater assurance to potential offtake parties, financiers and investors,” said Bannerman MD and CEO Brandon Munro.
“Strong participation in the raising from several specialist uranium funds, as well as a broad range of institutional investors from Australia and abroad, validates our Etango-8 development pathway and the approach the company has taken to stewarding this asset into the rapidly strengthening uranium market environment. I am grateful for the continued support of our existing shareholders and am delighted to further strengthen our register with the introduction of a wide spread of new, high quality institutional investors.”
A 2021 prefeasibility study into the Etango-8 project estimated that the project could produce 3.5-million pounds of uranium oxide a year, with a mine life of 15 years. The study estimated that the project would require a capital investment of $274-million, with all-in sustaining costs estimated at $40.3/lb.
The study estimated that the project would have a post-tax net present value of $222-million and an internal rate of return of 20.3%, with project cash flows estimated at $642-million.