Bannerman keen to add flagship project value

Uranium explorer Bannerman Energy said it was considering various funding sources to add value to its flagship Etango project, located in western Namibia. 

This announcement on Wednesday follows Bannerman receiving its mining licence for Etango on December 7 last year from the Namibian Ministry of Mines and Energy. 

"The company is evaluating and progressing various funding sources, including conventional project debt, as well as potential offtake and joint venture opportunities with strategic counterparties who can add value to the Etango project," Bannerman said.

"As previously advised, Bannerman has appointed Azure Capital and Vermilion Partners - both global affiliates of French financial services institution Natixis - to advise on and assist with the execution of the optimal funding mix for Etango." 

Upon receiving its mining licence, Subiaco-based Bannerman awarded two early works contracts to a Namibian contractor, worth $US2 million, with these activities on schedule and on budget. 

The spot price for uranium hit the $US100/pound barrier last week, its highest in 16 years, after reaching $US91/pound at the end of the December 2023 quarter. Unlike other commodity markets, uranium price hikes are typically based on industry fundamentals, instead of shareholder activity. 

A final investment decision on Etango, which received its first investment in 2006, is expected to be handed down by Bannerman's board later this year, subject to market conditions. 

Bannerman closed trade on Wednesday at $3.50 per share, adding 1 per cent.