Uranium explorer Bannerman Resources Ltd plans to accelerate development of its Goanikontes uranium project in Namibia, following confirmation it is to raise C$21 million ($22.8 million) through a fully underwritten capital raising to Canadian investors.
The Leederville-based company has filed a preliminary short form prospectus with securities regulatory authorities in Ontario, British Columbia, Alberta, Saskatchewan and Manitoba in respect of a public offering of ordinary shares.
The offer will be conducted through a syndicate of underwriters, led by Haywood Securities Inc., and including GMP Securities L.P., Cormark Securities Inc. and Thomas Weisel Partners Canada Inc.
The agreement with the syndicate is to sell 10.5 million shares at a price of C$2.00 per share to raise gross proceeds of C$21 million.
Bannerman plans to use the net proceeds from the offering to develop its Goanikontes uranium project in Namibia, expand exploration at the project and for working capital and general corporate purposes.
This financing represents the first step in the company's total project financing plan for the Goanikontes uranium project and with these funds secured the company intends to maintain the momentum of the previous year with a bankable feasibility study into developing the project to be conducted in 2008.
The company is planning for production at the project to commence in 2011.
The offer is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the Australian stock exchange.
The offer is expected to close on or about 27 March 2008.
Bannerman shares gained 9 cents, or 4.29 per cent, to close at $2.19 each.
