Bannerman Resources has advised would-be Chinese suitor Sichuan Hanlong Group that it will pursue discussions with other parties regarding development of its uranium project in Namibia, after Hanlong was unable to lock-in funding.
Bannerman advised the market in July that it had received a highly conditional acquisition proposal from Hanlong, which has been an active investor in Australian resources companies.
Since then, the two parties have been engaged in technical due diligence and discussions.
In a statement issued today, Bannerman said “there is a strong alignment of views between Bannerman and Hanlong on the positive outlook for the uranium sector and the quality and strategic value of the Etango uranium project given the size of its mineral resource, its location and its low development and processing risk”.
However, Hanlong has recently advised Bannerman that the China Development Bank (which is the intended financier of any Hanlong offer) requires additional due diligence to be undertaken to gain greater certainty regarding the timing and conditions of a mining licence.
“Hanlong has not yet been able to confirm the scope of that work, how long it will take to complete or how long it will take to secure approvals from the China Development Bank and the Chinese Government,” Bannerman said.
“As a result, the Board of Bannerman has concluded that it is unlikely that Bannerman will know whether Hanlong is in a position to enter into a binding agreement with Bannerman within a timeframe that would meet the reasonable expectations of Bannerman’s shareholders and other stakeholders, including the Namibian Government.
“Accordingly, Bannerman has formally advised Hanlong that, whilst Bannerman remains willing to consider a less conditional proposal from Hanlong, Bannerman will now focus on its existing discussions with other parties regarding development joint ventures and alternative corporate arrangements.”