African Critical Minerals: Namibia: Australian Company Bannerman Receives Investment Commitment for Etango Uranium Project

¬ Bannerman Raises 85 Million Australian Dollars to Advance the Etango Uranium Project in Namibia

¬ The Funding Target Is to Complete Preliminary Construction Before Making an Investment Decision in 2025

¬ Etango Is Expected to Produce 52.6 Million Pounds Over 15 Years; However, Full Funding Is Still Required

Bannerman Energy announced on Thursday, June 26, that it has received commitments from institutional investors for a share placement aimed at raising approximately 85 million Australian dollars (about 55 million US dollars). These funds, combined with the company's existing cash balance, will be used to support preliminary work at the Etango uranium mine site in Namibia, with the final investment decision (FID) expected to be made later this year.

Bannerman specifically stated that after the share placement is completed, the company will hold 140 million Australian dollars in cash, including the current 55 million Australian dollars in working capital. Of this, 55 million Australian dollars will be used for construction activities before the final investment decision (FID), such as earthworks and design. Another 40 million Australian dollars will be allocated for power and water infrastructure development, while the remaining 36 million Australian dollars will serve as general operating funds.

The financing is expected to advance the development of the Etango project. The project faced delays in 2024 due to two postponements of the FID. According to a feasibility study from 2022, the mine is expected to boost uranium production in Namibia, with an estimated output of 52.6 million pounds of uranium over the next 15 years. The project's development comes at a time when the civil nuclear energy market is particularly optimistic, with global uranium demand projected to increase by 28% between 2023 and 2030, according to data from the World Nuclear Association.

Although Bannerman hopes that Etango can capitalize on this trend, there are still several key obstacles before the final investment decision (FID). In addition to the ongoing preparations, the company has not yet secured the initial funding of 317 million US dollars required for the construction of the mine. Bannerman is considering debt financing or joint ventures, but the specific strategy remains unclear.

Source: ecofinagency

Original article: https://www.toutiao.com/article/1836220801691648/

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