A group of European investors has shown its support for Leederville-based uranium explorer Bannerman Resources Ltd by acquiring three million shares from the company's directors and other investors for $9.5 million.
A group of European investors has shown its support for Leederville-based uranium explorer Bannerman Resources Ltd by acquiring three million shares from the company's directors and other investors for $9.5 million.
A spokesman for the company told WA Business News the shares sold for around $3.16 each.
The full text of a company announcement is pasted below
Key points:
- Block of three million Bannerman shares purchased by Tier One European and Scandinavian investment funds.
- Key investors join share register to partner company as it develops its Namibian uranium projects towards production.
- Directors convert options in company and increase shareholding.
- No dilution of Bannerman share capital.
A consortium of Tier One European and Scandinavian Pension, Mutual and Equity Investment funds have purchased a block of three million shares in Australian based uranium exploration and development company Bannerman Resources (ASX: BMN).
The block is comprised of existing securities from a group of shareholders of which the Directors are a part. This placement was completed off-market and negotiated on behalf of the funds by WA based company Stripe Capital.
In conjunction with the purchase Directors in the company have chosen to convert options in the company so as to provide additional working capital to the company and increase their overall shareholding in Bannerman.
Alastair Clayton, Chairman of the Company said from London, "With the Company going to the next level in terms of its proposed work programmes at its Namibian uranium projects and having crossed two of the crucial milestones to future production the Board welcomes these additional institutional shareholders to the share register."
Clive Jones, a Director of the Company said from Copenhagen, "These shareholders have joined the Company at a particularly exciting and rapid phase of growth for the Company as it moves from explorer to developer and ultimately producer. The Company will continue to seek and cultivate strong relationships with those financial institutions that will partner the Company as it works towards its goal of becoming a globally significant producer of uranium."
Timing
With the release of the interim inferred resource at Goanikontes Anomaly A of 27 million pounds of contained U308 on 7th of May 2007 and the commencement of the Scoping Study by Coffey Partners and Independent Metallurgical Operations (IMO), the Company has cleared two significant hurdles on its path to becoming a globally significant producer of U308 in the future.
The Company expects to have results of the Scoping Study in the next 12 weeks. This Study will include projected costs of extraction per pound of U308 and projected capital costs of establishing a bulk mining operation at Goanikontes Anomaly A using the interim resource as a base-case.
Drilling to include higher grade mineralisation below the base of the interim resource (to ~80m depth) is on-going to depths of around 300m. An additional drilling rig will be added to the fleet currently contracted at Goanikontes Anomaly A in the coming weeks.
It is envisaged that a more comprehensive resource for Anomaly A will be available by the 4th Quarter of this year, thus allowing the projected production profile of the Goanikontes Anomaly A Project, identified in the Scoping Study, to be increased significantly.
Additionally the Company has a further 35km of highly prospective anomalous radiometric strike including seven high priority targets on the Welwitschia lease to test as well as the Elspe Project adjacent to Langer Heinrich in Namibia and the Serule and Dukwe Projects in Botswana.
Intent
o Facilitate an initial investment in the Company by the consortia of Tier One European and Scandinavian investment funds.
o Addresses strong external institutional demand for securities in the Company.
o Provide adequate cash for the Directors to exercise options in the Company.
o Contribute significant additional funds to the company through the exercise of options.
o Achieve the above outcomes in a manner that does not alter the fully diluted capital base of the Company.
Outcome
o The Company welcomes a consortia of Tier One European and Scandinavian Pension, Mutual and Equity Investment funds to the share register.
o The Directors will increase the number of fully paid shares they hold in the Company.
o The subsequent exercise of options in the Company will inject a further $895,100 into the company.
o The Fully Diluted Share Capital of the Company will remain unchanged.
