Bannerman to raise funds for uranium project

Shares in uranium miner Bannerman Resources dropped 15.3 per cent on news it initiated a discounted share purchase plan to raise up to $2 million.

“The share purchase plan will provide eligible shareholders with an opportunity to subscribe for up to $15,000 worth of new Bannerman shares at 5.2 cents per share,” the company said in a statement.

It sent the company’s share price down to 5.5 cents per share by the close of trade.

The company said eligible Bannerman directors would fully participate in the raising.

Bannerman plans to use the funds raised from the share purchase plan to operate its Etango uranium project in Namibia, Africa, and for general working capital.

Bannerman has previously stated the Etango project would have a 16-year mine life and has the potential to produce up to 104 million tonnes of uranium during that time.

It will cost Bannerman about $US870 milion in pre-production costs.