AMN - NAMIBIA: Bannerman well-funded to advance Etango

Bannerman Resources is well funded to continue the definitive feasibility study (DFS) update on its Etango Uranium Project in Namibia after completing an $8 million heavily oversubscribed capital raising.

The company is prioritising a number of optimisation opportunities at Etango and will progressively undertake optimisation studies that have the potential to be value-accretive.

Once the optimisation phase is completed, Bannerman will conclude the DFS update by undertaking definitive level engineering to incorporate identified project enhancements and update the procurement process.

The equity raising attracted more than a dozen new institutional investors.

Since Brandon Munro was appointed chief executive officer just over two years ago, the institutional component of the Bannerman register has increased to over 11% from 4%.

With this raising, Bannerman has positioned itself to require no further funding until a final investment decision, should current uranium price momentum continue into a sector correction.

Brandon Munro said: “The success of our $8 million capital raising demonstrates institutional investors’ confidence in our Etango project.

“Bannerman is now well funded and exceptionally well positioned in front of a uranium price recovery being driven by supply-side discipline from Cameco Corporation and demand from physical uranium investment funds such as Yellow Cake PLC.”

This comes after Canadian producer Cameco said it would shut its McArthur River mine in Canada indefinitely.

With an annual production rate of 18 million pounds U3O8, McArthur is the world's largest uranium mine, accounting for more than 10% of global supply

The effect of supply disruptions over the last year could reduce 2018 world uranium supply by more than 20%, or 35 million pounds, in comparison with 2017.

As a result, the global uranium sector is expected to experience deficits in 2018/2019 after almost a decade of surpluses.

The Etango project hosts a resource of 271 million pounds of uranium and is the largest advanced, unaligned uranium project in the world.

The project is near Rio Tinto Ltd's Rössing uranium mine, Paladin Energy's Langer Heinrich uranium mine and CGNPC’s Husab uranium mine.

www.bannermanresources.com