leadf
logo-loader
viewBannerman Resources Ltd

Bannerman Resources secures $4M facility from RCF for Etango uranium project, Namibia

au_australiancash350_53433565439b9.jpg

Bannerman Resources (ASX: BMN, TSX: BAN, NSX: BMN) has reported that Resource Capital Fund (RCF) has agreed to provide a $4 million convertible note facility to support the construction and operation ofa pilot plant at the Etango Project.

The facility will be repayable in September 2016, at an 8% per annum coupon rate payable quarterly in arrears in new Bannerman shares, or cash in certain circumstances.

Conversion price is to be calculated on a VWAP prior to drawdown of funds, but will be between $0.06 and $0.095 per share.

Bannermans's 80%-owned Etango Project lies southwest of Rio Tinto’s (ASX:RIO) Rössing uranium mine and CGNPC’s Husab Project, and to the west of Paladin Energy’s (ASX: PDN) Langer Heinrich mine.

The pilot plant will be constructed to confirm the Definitive Feasibility Study processing assumptions, and should further de-risk the project.

RCF is a private equity fund that makes investments exclusively in the mining sector across a diversified range of hard mineral commodities and geographic regions.

RCF is currently investing its sixth sub-fund, RCF VI, with committed capital of US$2.04 billion, under which its investment in Bannerman is housed.

The new facility will complement the existing shareholding and convertible note held by RCF, and highlights RCF’s continuing support for the Etango Project.

It will enable construction and operation of the pilot plant and progress the Etango Project to the early stages of detailed engineering.

The pilot plant capital cost is estimated at $1.2 million, and will be operated for at least one year, at a cost of $50,000 per month.

Bannerman’s advanced Etango Project remains one of the few globally significant uranium projects that can realistically be brought into production in the medium term.

The company is capped at $31 million and retains $1.8 million in cash.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Quick facts: Bannerman Resources Ltd

Price: 0.043 AUD

ASX:BMN
Market: ASX
Market Cap: $45.53 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Bannerman Resources Ltd named herein, including the promotion by the Company of Bannerman Resources Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Bannerman Resources MD discusses uranium markets, as predictions proven correct

Brandon Munro, managing director of Bannerman Resources Ltd (ASX:BMN; NSX:BMN), catches up with Proactive Investors to give his updated take on global uranium markets. His public predictions about supply side disruption in 20% of the market, made in May, have come true. Prices have risen...

on 20/11/18

2 min read