Another ASX-listed uranium company is raising cash to step up its project amid revived interest in the commodity.
Another ASX-listed uranium company is raising cash to step up its project amid revived interest in the commodity.
Following suit from fellow uranium companies Boss Energy and Vimy Resources, Subiaco-based Bannerman Energy has this morning announced it would be raising up to $45 million from investors.
The raise, led by Canaccord Genuity and Euroz Hartleys, was put forward to new and existing institutional and sophisticated Bannerman shareholders offering up to 185 million new shares at a discounted 22 cents.
Among them were several specialist uranium investment funds, according to Bannerman.
The offer price was a 17 per cent markdown on Bannerman’s last close price and an 11.3 per cent discount on its 5-day volume-weighted average price.
Some $40.7 million worth of shares were picked up in the bookbuild with another $5 million set to be raised via a share purchase plan in April, taking the company’s projected total whip-round to $45.7 million.
Those funds will go towards the company’s Etango project, its flagship asset located in the Erongo Region of Namibia believed to contain 207 million pounds of uranium compound.
Specifically, the proceeds will allow Bannerman to complete a definitive feasibility study for the project due later this year, front-end engineering and design and detailed design, product marketing and project financing activities.
West Perth-based Vimy Resources recently raised $17 million from investors, which was then followed by a $125 million campaign by Boss Energy to restart its Honeymoon project in South Australia.
Investment activity comes during an eventful period for uranium, with Russia’s invasion of Ukraine, perceived energy security threats, and a broader decarbonisation thematic seemingly contributing to renewed investor interest.
Bannerman shares were down 11.3 per cent to trade at 24 cents.
