Bannerman aims for project ownership

Uranium hopeful Bannerman Resources is looking to take full ownership of the Etango project in Africa and become debt free, through a deal with its two major shareholders.

Bannerman is offering non-executive director and shareholder Clive Jones $1 million in cash and 123.4 million shares (equal to 17.7 per cent of the company’s share capital) in exchange for Mr Jones’ 20 per cent stake in the Etango uranium project.

The company has also entered into an agreement with Resource Capital Funds for the conversion of $8 million convertible notes into Bannerman shares at 7.5 cents each, and for the sale of a 1.5 per cent royalty at Etango for $6 million, which comprises $2 million in cash and the release of $4 million worth of convertible notes held by RCF.

Bannerman will also place 63.3 million shares to RCF at 4.7 cents each to raise $3 million.

“Upon completion, the proposed transactions will result in Bannerman moving to 100 per cent ownership of the Etango project and becoming debt-free,” the company said in a statement.

“The shareholdings of RCF and Mr Jones would move to about 38.7 per cent and 11.05 per cent of Bannerman’s share capital respectively.”

Bannerman is currently working towards completion of an optimisation study on Etango’s development model, with the results to be released at some stage during the quarter.

Bannerman shares were 13 per cent lower to 4 cents each at 10:50am.