CHAMWE KAIRA
Bannerman Energy Limited, that has just been granted a mining licence for its flagship, Etango uranium project in the Erongo Region, has said to achieve the range of outcomes indicated in the Definitive Feasibility Study, pre-production funding in excess of US$320 million will likely be required.
“There is no certainty that Bannerman will be able to source that amount of funding when required. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Bannerman’s shares. It is also possible that Bannerman could pursue other value realisation strategies such as a sale, partial sale or joint venture of the Etango-8 Project. These could materially reduce Bannerman’s proportionate ownership of the Etango Project,” the company told investors after it was awarding a mining licence.
Bannerman, which is listed in Australia and Namibia said last week that has been granted a mining licence for Etango along with award of initial contracts for the Etango early works programme.
The granting of the mining licence has allowed Bannerman to move immediately to award two key early works contracts on Etango for the building of the temporary construction water supply and the site access road.
The company said the temporary construction water pipeline will ensure sufficient water is available onsite when the main earthworks and civil contracts commence. The access road will enable controlled access to the mine site with minimal impact on the surrounding area to be achieved from the start of full construction works, the company said.
Bannerman’s Managing Director and Chief Executive Officer, Brandon Munro said the granting of the Etango mining licence represents a milestone event for Bannerman and our valued stakeholders.
“This moment is the culmination of our unwavering focus on Etango since our initial investment in 2006, all the while maintaining our conviction in the vital role of nuclear power for a better world. Etango is now fully permitted, enabling us to drive key project work streams towards a final investment decision in parallel with the ongoing strengthening in uranium market fundamentals.”
