Bannerman Energy has launched a fully underwritten A$124 million placement to cover its remaining share of funding needed to take Namibia’s Etango uranium project through construction and ramp-up, clearing another major financial hurdle ahead of a final investment decision expected in the fourth quarter of 2026.
The company announced the raising on 9 September, saying it follows confirmation that all conditions precedent to the strategic investment by China National Nuclear Corporation subsidiary CNNC Overseas Limited (CNOL) have either been satisfied or waived. The Chinese investment is expected to close this month.
Bannerman is also planning a non-underwritten share purchase plan of up to A$10 million, potentially taking the new equity raising to A$134 million.
The placement, Bannerman’s existing cash, CNOL’s subscription and reimbursement payments and the Chinese partner’s future pro-rata working capital contributions are expected to fund Etango through construction and ramp-up fully.
That significantly changes the financing position of one of Namibia’s largest proposed uranium developments as Bannerman moves towards full-scale construction.
FID and full construction targeted for Q4
The financing comes as Bannerman prepares to complete the CNOL transaction, which will leave Bannerman with 55% of the Etango joint venture and CNOL with 45%.
Bannerman expects to complete the share subscription agreement and execute the shareholders’ agreement in September, after which it will make a final investment decision and begin full-scale construction in the fourth quarter.
Early construction work is already underway and, according to Bannerman, remains on budget and on schedule.
The structure means Bannerman and CNOL will subsequently fund Etango capital expenditure and operating costs according to their respective 55% and 45% interests.
CNOL will also purchase 60% of Etango’s uranium production under an offtake arrangement based on arm’s-length, market-based pricing rather than a fixed uranium price.
Bannerman executive chairman Brandon Munro said the CNOL transaction and the latest equity raise would allow the project to be developed without project debt.
“This underwritten placement, in addition to the near-term investment by CNOL, means we are funded to deliver the development of Etango on a debt-free basis,” Munro said.
He said the arrangement financially de-risks construction and ramp-up while retaining market-priced exposure to uranium through the CNOL offtake agreement.
A$124m placement underwritten
Bannerman will issue approximately 31 million new shares at A$4.00 each to institutional and sophisticated investors, raising A$124 million before costs.
The A$4.00 issue price represents a 5.4% discount to Bannerman’s A$4.23 closing share price on 8 September.
The placement is being conducted under Bannerman’s existing ASX placement capacity and does not require shareholder approval. Settlement is expected on 15 September, with the new shares scheduled to be allotted the following day.
Macquarie Capital and Canaccord Genuity are joint lead managers, joint underwriters and joint bookrunners, while Jett Capital Advisors is co-lead manager.
Bannerman said the money will principally fund its 55% share of Etango’s remaining working-capital requirements, while also providing additional headroom for construction, contingencies, growth initiatives, corporate expenses and the costs of the raising.
The significance is that the A$124 million should not be viewed as the total cost of building Etango. It represents the latest part of a wider funding package that includes Bannerman’s existing cash and the substantial capital being brought into the project through the CNOL transaction.
Chinese deal now unconditional
The latest announcement also removes an important qualification that had remained over the Chinese funding deal.
When Bannerman announced the CNOL transaction in February, completion remained subject to a series of conditions. Bannerman now says CNOL has confirmed that all conditions precedent have been satisfied or waived, leaving completion of the investment as the next step.
The transaction will create an incorporated joint venture through Bannerman Energy (UK) Ltd, with CNOL investing at completion.
CNOL is part of CNNC, which already has a substantial footprint in Namibia’s uranium industry. Bannerman notes that the CNNC group owns 68.62% of Rössing Uranium and 25% of Langer Heinrich, giving its new Etango partner existing exposure to two of the country’s established uranium mines.
Etango will add a greenfield development to that portfolio if the project proceeds through FID and construction as planned.
Shareholders offered another A$10m
Existing eligible Bannerman shareholders in Australia and New Zealand can also participate through the share purchase plan.
The company is targeting up to A$10 million through the SPP, although it is not underwritten and could therefore raise less. Bannerman also retains discretion to accept a higher amount.
Eligible shareholders can apply for up to A$30,000 worth of shares at the same A$4.00 issue price as the institutional placement, without paying brokerage fees.
The SPP is scheduled to open on 18 September and close on 2 October, with results and the issue of shares expected on 9 October. However, Bannerman says the timetable remains subject to change.
Etango’s immediate milestone is completing CNOL’s investment in September.
Once that occurs, Bannerman expects to move to FID and full-scale construction during the fourth quarter, with the A$124 million placement closing the residual funding gap on its side of the joint venture and positioning Etango to proceed through construction and ramp-up without project debt.
