Bannerman Resources Limited (ASX:BMN) has reported a strong June quarter during which the company completed an $8 million heavily oversubscribed capital raising.
Bannerman is now well funded to continue the definitive feasibility study (DFS) update on its Etango Project in Namibia.
Bannerman chief executive officer Brandon Munro said: “The success of our $8 million capital raising demonstrates institutional investors’ confidence in our Etango Project.
“Bannerman is now well funded and exceptionally well positioned in front of a uranium price recovery being driven by supply side discipline from Cameco Corporation and demand from physical uranium investment funds such as Yellow Cake PLC.”
Uranium sector poised for recovery as Cameco shuts McArthur River indefinitely
The uranium price increased 6% overnight after Canadian producer Cameco said it would shut one of its mines indefinitely.
With an annual production rate of 18 million pounds U3O8 (triuranium octoxide), McArthur River is the largest uranium mine in the world and accounts for more than 10% of global supply
The effect of supply disruptions over the last year could reduce 2018 world uranium supply by more than 20% (35 million pounds) in comparison with 2017.
As a result, the global uranium sector is expected to experience deficits in 2018/2019 after almost a decade of surpluses.
DFS update to continue at Etango
Bannerman is prioritising a number of optimisation opportunities at Etango and will progressively undertake optimisation studies that have the potential to be value-accretive.
Once the optimisation phase is completed, Bannerman will conclude the DFS update by undertaking definitive level engineering to incorporate identified project enhancements and update the procurement process.