• Bannerman raises A$85M to advance Etango uranium project in Namibia.
• Funds target pre-construction ahead of 2025 investment decision.
• Etango may produce 52.6M lbs over 15 years; full funding still needed.

Bannerman Energy announced Thursday, June 26, that it has secured commitments from institutional investors for a share placement aiming to raise approximately 85 million Australian dollars, or about $55 million. These funds, combined with the company’s existing cash balance, will support preliminary works at the Etango uranium project site in Namibia ahead of a final investment decision (FID) expected later this year.

Specifically, Bannerman stated it will hold A$140 million in cash upon completion of the placement, which includes the current A$55 million in treasury. Of this, A$55 million will be allocated to pre-FID construction activities, such as earthworks and design. Another A$40 million is earmarked for water and power infrastructure, while the remaining A$36 million will serve as general working capital.

This financing is expected to advance the development of the Etango project, which experienced delays in 2024 with two FID postponements. The future mine is projected to bolster Namibia’s uranium output, estimated to produce 52.6 million pounds of uranium over 15 years, according to a 2022 feasibility study. Its development comes amid a particularly favorable market for civil nuclear energy, with global uranium demand forecast to rise by 28% between 2023 and 2030, according to the World Nuclear Association.

While Bannerman is banking on Etango to capitalize on this trend, key hurdles remain before the FID. In addition to ongoing preparatory work, the company has yet to secure the initial $317 million needed to build the mine. Bannerman is considering debt financing or a joint venture partnership, but the specifics of this strategy remain unclear.

This article was written in French by Aurel Sèdjro Houenou,

Edited in English by Mouka Mezonlin