Bannerman's Etango to cost $1.1bn

An optimisation study on Bannerman Resources’ Etango uranium project has found a 9 per cent reduction in pre-production capital costs to $US793 million ($A1.1 billion).

Bannerman and its independent technical consultants Amec Foster Wheeler and Optiro completed an optimisation study on a 2012 definitive feasibility study on the African uranium project.

The new study reaffirmed Etango could produce an average of 7.2 million pounds of uranium per annum over an initial 15.7-year mine life, while average life-of-mine costs have been reduced by 17 per cent to $US38 per pound.

Chief executive Len Jubber said the study had strongly repositioned Etango, demonstrating project economics that were highly competitive at consensus incentive long-term uranium prices.

“Importantly, the work has also confirmed the technical robustness of the definitive feasibility study,” he said.

“Bannerman has now established a sound project platform for extensive engagement with the global nuclear industry.

“The technical and financial credibility that comes with Etango’s advanced stage of study will be of critical benefit to the company during this educating and marketing process.”

Bannerman is seeking to wholly acquire Etango through a deal with its major shareholder, Resource Capital Funds, which owns a 20 per cent stake in the project.

Meanwhile, at the company’s annual general meeting today, Bannerman shareholders voted in favour of all resolutions, however there was a 15 per cent ‘no vote’ against the re-election of Clive Jones as a non-executive director.

Bannerman shares were 2.6 per cent higher to 3.9 cents each at the close of trade.