CHAMWE KAIRA
Bannerman Energy Ltd has raised N$110 million by issuing new shares to investors. The money that was raised will be used for the developing of the Etango Project in the Erongo Region.
The company confirmed that following the receipt of shareholder approval at the general meeting held on 12 August, tranche two of the placement announced 28 June had been successfully completed.
Accordingly, the company has today issued 2,830,765 new fully paid ordinary shares to new and existing institutional and sophisticated investors at an issue price of A$3.30 per. The new share will raise gross proceeds of approximately A$9.3 million (N$110m), said executive chairman, Brandon Munro.
This announcement follows an earlier announcement made in June that the company had received firm commitments for a two-tranche placement of approximately 25.8 million new fully paid ordinary shares to new and existing institutional and sophisticated investors at an issue price of A$3.30 per new Share to raise gross proceeds of approximately A$85 million.
The placement in June was supported by both new and existing domestic and international institutional and sophisticated investors.
Funds raised from the offer to be applied towards development of the Etango-8 Project, including detailed design, early works (including construction infrastructure, earth works and selected long-lead items) and general working capital.
Upon completion of the placement, the company expects to have cash reserves of approximately A$100 million (after costs).
“Proceeds from this placement will enable us to further progress our Etango-8 Project, following positive outcomes from the recently announced Front End Engineering and Design (FEED) and Control Budget Estimates (CBE) processes, which confirmed the high quality of technical evaluation and design from the December 2022 Definitive Feasibility Study (DFS).”
Bannerman said it has already commenced with the detailed design work and early works construction, and the placement will enable the company to advance further works including the procurement and manufacturing of select long-lead items, product marketing and project financing activities.
It further said all these activities are all directed towards advancing Etango to a targeted positive Final Investment Decision (FID) during this year.
“We are excited by the support that we have received from investors for both our Etango-8 development pathway and the approach the company has taken to stewarding this asset into the rapidly strengthening uranium market environment. I would also like to welcome our new shareholders through the raising and look forward to building a strong relationship with them,” said Munro.
