Chamwe Kaira
Bannerman Energy and CNNC Overseas Limited (CNOL) have signed an agreement to advance the Etango uranium project, securing both funding and long-term uranium offtake for the development.
Under the agreement, CNOL will receive a life-of-mine entitlement to 60% of Etango’s yellowcake uranium production, while Bannerman will independently market the remaining 40%.
The uranium supplied to CNOL will be priced using a combination of spot and term uranium price indices. The companies said the agreed payment and delivery terms are expected to improve working capital efficiency and support project value.
The Etango project is one of Namibia’s major uranium developments and forms part of the country’s growing uranium sector, which continues to attract international investment as global demand for nuclear fuel increases.
As part of the agreement, a new joint venture company will be created, with Bannerman holding a 55% stake and CNOL holding 45%.
CNOL will make an initial investment of US$294.5 million and reimburse Bannerman for historical expenditure of up to US$27 million.
The companies have also agreed on an initial development plan and budget for the Etango project.
A steering committee made up of three representatives from each company has already been formed to oversee the project’s development. The committee is chaired by Bannerman chief executive officer Gavin Chamberlain and will serve in an advisory role to the joint venture company.
The agreement still depends on several approvals and conditions before completion. These include approvals from Chinese regulatory authorities, shareholder approval from CNUC, clearance from the Namibian Competition Commission, amendments to funding arrangements and the signing of key infrastructure supply contracts for the project.
The companies said all conditions must be met or waived by 30 September 2026, although the deadline may be extended if both parties agree.
Under the governance structure, Bannerman will retain majority control of the joint venture board and appoint three of the five directors. Bannerman will also appoint three of the five key executive management positions at the Namibian operating subsidiary, including the chief executive officer role.
Future project funding will be shared according to ownership levels, with Bannerman responsible for 55% and CNOL for 45%. The companies said they intend to maintain these ownership ratios for both equity and debt financing throughout the life of the project.
The shareholders’ agreement also includes measures covering strategic decisions, confidentiality, conflicts of interest, pre-emptive rights and restrictions on acquiring shares in each other’s listed companies without approval.
