Jones ups Bannerman stake for bargain price

CLIVE Jones has boosted his shareholding in Bannerman Resources, exercising more than 4 million options at less than a fifth of the current share price.

Mr Jones, a non-executive director on the board of Bannerman, spent $922,500 converting 4.6 million options that had an exercise price of 20 cents.

The options were allocated to Mr Jones when he was appointed to the board in early 2007, when Bannerman's share price was trading at around $2.25.

The options were due to expire next year.

During the past two weeks, Bannerman's share price has been trading at around $1.30, up from the lows of around 24 cents reached in October last year.

Mr Jones, who also sits on the board of Cazaly Resources, Graynic Metals and Cortona Resources, pocketed $2.5 million after selling 2 million shares at $1.25 each earlier this month.

In a statement, Bannerman said the share sale was to fund the option exercise and meet resultant tax liabilities, and other personal reasons.

Mr Jones' interest in Bannerman has increased from 6.28 per cent to 7.85 per cent. He has 1 million options left with half exercisable at $6.50 by next year and the remainder exercisable at $7.50 by the following year.

Bannerman's share price was bolstered from about $1 late last month, when it unveiled a $37.5 million capital raising plan comprising of a placement and a share purchase plan, with securities priced at $1 each.

The explorer has so far raised $10 million in each of Australia and Canada, where it is also listed, and has received a commitment from Hong Kong-listed Regent Pacific Group to subscribe for $10 million worth of shares.

The share purchase plan is due to close on June 23.

Funds from the placement will be used to complete the feasibility study on the Etango uranium project in Namibia, exploration costs on other projects and working capital.