15/12/2011 - 13:31

Bannerman raises $8m for Namibian project

15/12/2011 - 13:31

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Bannerman raises $8m for Namibian project

Uranium explorer Bannerman Resources has announced that it has received subscription commitments for an $8.2 million share placement, with funds going to complete its feasibility study on its Entango uranium project by the end of March, 2012.

Existing and new institutional shareholders have subscribed for approximately 36.5 million ordinary shares at a price of 22.5 cents each.

Bannerman chief executive officer Len Jubber said in a statement: “We welcome the strong interest of new institutional investors and the continued support of existing major shareholders.”

“This puts the company in a solid financial position as we move to complete the definitive feasibility study on the Etango uranium project in early 2012 and continue our engagement with potential development partners.

“The capital raising in these globally uncertain financial times highlights the strategic significance of Etango which will shortly be one of the very few large and independently-owned uranium projects with a completed definitive feasibility study.”

The Perth-headquartered company has 80 per cent ownership of the Entango uranium project.

The bidding process was managed by GMP Securities Australia and supported by Argonaut Securities, CIBC, and Haywood Securities.

Allotment of the shares is set for December 23, 2011.

An agreement regarding refinancing its outstanding convertible note, reducing the value from $10 million to $8 million, was also reached by Bannerman today. The amount will be rolled over into a new convertible note, subject to terms and conditions and shareholder approval.

The conversion price of the note is 28.13 cents per share, and has an 8 per cent p.a. coupon interest payable quarterly via the issue of new Bannerman shares or in cash in certain circumstances.

Bannerman shares resumed trading today on the ASX, and are down 5.5 cents from yesterday's close, currently trading at 22 cents.

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