• Bannerman signs first uranium offtake deals from Etango project.

• One million pounds to North American utilities, 2029–2033.

• Final investment decision expected in late 2025.

Bannerman Energy announced on Friday, September 5, that it has signed two offtake agreements to sell a total of one million pounds of uranium from its Etango project in Namibia. The buyers, described as leading North American electric utilities, have secured the first volumes from the future mine.

The agreements cover deliveries over five years, from 2029 to 2033. Production is expected to begin in 2028, with each contract including an option to adjust the annual quantity by 10%.

While the exact sales prices were not disclosed, the company stated that the "base price is broadly reflective of the current level of long-term uranium price indices." According to data compiled by Cameco, the average long-term uranium price was $81 per pound in August.

"The signing of these limited, select offtake agreements (the first for Bannerman) with high-quality utility counterparties represents a further important step in our systematic advancement of Etango towards a targeted final investment decision (FID)," said Gavin Chamberlain, CEO of Bannerman.

The FID for Etango, which was postponed in 2023 and 2024, is now slated for late 2025. This critical milestone precedes the injection of initial development funds. A 2022 feasibility study estimated that building a mine at Etango would require an initial investment of $317 million. Once at full capacity, the mine is projected to produce 3.5 million pounds of uranium annually over a 15-year life span.

The signing of these agreements places Etango in a regional trend of North American companies securing African uranium. Aura Energy has also signed two separate sales agreements with Curzon Trading and a U.S. utility for its Tiris project in Mauritania. Similarly, Lotus Resources signed a deal in April for uranium from its Kayelekera project in Malawi.

Aurel Sèdjro Houenou