28/10/2016 - 11:19

Bannerman raises funds for uranium project

28/10/2016 - 11:19

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Perth-based explorer Bannerman Resources has tapped investors for $4 million to fund an engineering program to help reduce cost estimates at its $US793 million Etango uranium project in Africa.

Bannerman raises funds for uranium project
Bannerman hopes to reduce the capital expenditure requirements of its Etango uranium project in Africa (artist's rendering above).

Perth-based explorer Bannerman Resources has tapped investors for $4 million to fund an engineering program to help reduce cost estimates at its $US793 million Etango uranium project in Africa.

Bannerman told the market today it had received firm commitments for the placement of 133.3 million shares at 3 cents each to investors, including existing shareholder Resource Capital Funds.

The price of the raising represents at 13.5 per cent discount to the company’s 15-day volume-weighted average price.

Proceeds of the raising will be used to undertake engineering work at the Etango project, with a focus on reducing project and capital cost estimates.

An optimisation study on Etango in November last year revealed a capex of $US793 million to bring the project into production.

“We are delighted with the strength of the response to our placement offering,” Bannerman chief executive Brandon Munro said.

“It is a testament to the quality of the Etango project and its outstanding positioning to capitalise on an expected rebound in uranium market prices over coming years.”

Morgans Corporate and Patersons Securities acted as joint lead managers to the raising.

Bannerman shares were 5.5 per cent lower to 3.4 cents each at 11am.

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