- 01Underwritten A$124m raise to fund Bannerman's Etango.
- 02CNOL JV to close Sept; 55/45 split; FID, build Q4 2026.
- 03SPP up to A$10m; 31m @A$4, 5.4% discount.
Bannerman Energy (ASX: BMN) has launched a fully underwritten placement to raise A$124 million before costs as part of a funding package expected to cover its share of the Etango uranium project through construction and ramp-up.
The raising follows confirmation that all conditions precedent to the strategic investment and joint venture with CNNC Overseas (CNOL), part of China National Nuclear Corporation, have been satisfied or waived.
Completion of the CNOL transaction is expected during September, after which Bannerman is targeting a final investment decision and commencement of full-scale construction during the fourth quarter of 2026.
A separate non-underwritten share purchase plan will seek up to A$10m, while Etango early works are continuing in line with budget and schedule.
Bannerman was awarded the Mining Licence for Etango in December 2023 and has received all environmental approvals for the proposed mine and external mine infrastructure.
Dual Placement Structure
The placement will issue approximately 31 million new fully paid ordinary shares to institutional and sophisticated investors at A$4.00 each, representing a 5.4% discount to Bannerman’s A$4.23 closing price on 8 September.
Bannerman will use its existing placement capacity under Listing Rule 7.1, removing the need for shareholder approval, with settlement expected on 15 September and allotment of the new shares on 16 September.
Proceeds are intended to meet Bannerman’s 55% share of the residual Etango working capital requirement, while providing additional headroom for construction, future contingencies, growth initiatives, general corporate expenses, and offer costs.
Under the SPP, eligible shareholders in Australia and New Zealand who held Bannerman shares at 7pm Sydney time on 8 September can apply for up to A$30,000 of new shares at the same A$4.00 issue price without brokerage fees.
The SPP is scheduled to open on 18 September and close on 2 October, with Bannerman retaining discretion to accept more than the targeted A$10m or scale back applications if demand exceeds its requirements.
CNOL Partnership Final Hurdle
Completion of the strategic transaction will involve completion of the Share Subscription Agreement and execution of the Shareholders Agreement for the incorporated joint venture, with Bannerman holding 55% and CNOL 45%.
Following completion, Bannerman and CNOL will fund further capital expenditure and operating costs of the joint venture and Etango in proportion to those ownership interests.
CNOL will purchase 60% of Etango production under a cornerstone offtake arrangement priced on arm’s-length, market-based terms, granting significant supply flexibility.
“This underwritten placement, in addition to the near-term investment by CNOL, means we are funded to deliver the development of Etango on a debt-free basis, financially de-risking construction and ramp-up, while also having the benefit of securing CNOL’s strong execution support alongside fully market-priced exposure to uranium through the flexible cornerstone offtake arrangement,” executive chair Brandon Munro said.
“This is a highly robust outcome that further emphasises the natural leverage to uranium price upside that Bannerman boasts by virtue of Etango’s large scale and expansion potential.”
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