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


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.


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