Bannerman Energy (ASX: BMN) has entered into a transformative strategic financing and joint venture agreement with CNOL, a subsidiary of China National Nuclear Corporation (CNNC), for its Etango Uranium Project.
This multi-billion dollar deal, announced after a trading halt, de-risks the project's development and secures significant funding.
CNOL Invests US$321.5M in Etango JV
The binding agreement sees CNOL commit to invest up to US$321.5 million into a new joint venture company (JVCo). CNOL will acquire a 45% stake in JVCo, with Bannerman retaining the majority 55% interest.
JVCo is set to own 95% of the Etango Project itself. This structure translates to Bannerman holding 52.25% economic ownership of Etango, while CNOL holds 42.75%.
The remaining 5% is held by the One Economy Foundation on a loan-carried basis.
A key aspect of the deal is CNOL's commitment to provide debt-free construction funding for the project.
Furthermore, Bannerman will be reimbursed up to US$27 million by CNOL for its share of project expenditure incurred up to the point of completion.
The initial investment by CNOL into JVCo is US$294.5 million.
60% Offtake Secured With Market Terms
As part of the strategic partnership, CNOL will secure a 60% life-of-mine offtake entitlement from Etango's future uranium production.
This provides significant revenue visibility for a substantial portion of the project's output.
Bannerman retains the flexibility to independently market its 40% residual offtake into the global uranium market.
The pricing for the offtake agreements will be arm's-length and market-based, subject to periodic review every five years after first production.
Completion Target and Approvals
Project completion for Etango is targeted for mid-2026. Following this, a Final Investment Decision (FID) is expected to be made promptly thereafter, paving the way for full-scale construction and production.
Several conditions precedent must be satisfied for the deal to close.
These include key Chinese regulatory approvals from bodies such as NDRC and MOFCOM, approval from CNUC, and clearance from the Namibian Competition Commission.
Finalisation of the One Economy Foundation amendment and infrastructure contracts are also critical.
The long stop date for these conditions is 30 September 2026.
Context: Etango's Path to Production
This transformative deal follows substantial progress on the Etango Uranium Project.
Previous annual reports, including the one released on 24 September 2025, highlighted the advancement of early works and robust environmental approvals.
The company had previously raised A$170 million through equity placements to support these efforts, with Brandon Munro playing a key role in advancing the project.
The 29 January 2026 Quarterly Activities Report further noted that early works were 51% complete, and the crucial HPGR tertiary crusher had been delivered to site.
Prior to this agreement, Bannerman was progressing towards a Final Investment Decision with a strong liquidity position, reporting A$89.3 million in cash and A$12.7 million in liquid assets as of December 2025.
The company had also secured two initial offtake agreements in September 2025.
The new joint venture structure with CNOL directly addresses significant investor concerns previously associated with project funding risk, financing and offtake uncertainty, and construction and schedule risk.
The partnership with a global nuclear utility like CNNC brings substantial synergy and a clear pathway to project realisation.
Etango De-Risked by CNNC Partnership
The strategic financing and JV with CNOL marks a pivotal moment for Bannerman Energy, substantially de-risking the Etango Uranium Project by securing major investment and eliminating construction funding concerns.
While regulatory approvals and execution remain key watch points, the deal provides a clear path to production and market-based revenue.
