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Bannerman Resources buoyed as uranium investors snap up RCF’s substantial stake

Scale of transaction and participation by specialists are strong signals of the health of uranium investor sentiment, says CEO.
Drums of uranium
Resource Capital Fund has sold its entire stake of more than 191 million shares

Bannerman Resources Limited’s (ASX:BMN) (NSX:BMN) substantial shareholder Resource Capital Fund (RCF) has sold its entire stake of more than 191 million shares in the uranium explorer and developer.

The purchasers are believed to be a number of Australian and offshore institutions, including significant participation by specialist uranium investment funds and existing institutional shareholders.

READ: Bannerman Resources well-funded to advance its project amid uranium price rise

Chief executive officer Brandon Munro said the scale of the line that had been transacted and the participation by specialist uranium funds were strong signals of the health of uranium investor sentiment.

The sale by Resource Capital Fund IV and Resource Capital Fund VI was effected through a crossing on ASX on Friday, September 14, 2018.

This follows the sale by RCF of more than 93.7 million shares in the period from July 24, 2018, to  August 23, 2018.

Shares increase almost 4% at opening

Shares opened today at 6 cents, up almost 4% on Friday’s close.

Munro said, “Completion of this sale underscores the high regard in which Bannerman is held by institutional investors and will provide serious strength to Bannerman’s register.”

READ: Bannerman Resources in heavily oversubscribed raising as institutions build positions

Bannerman raised eyebrows in June when it tapped onshore institutions for an $8 million capital raising.

The raising, which was believed to be heavily oversubscribed, was at 4.6 cents per share – more than a 50% premium to Bannerman’s 2016 raising.

Munro said the company momentum continued as its share price responded to improved market dynamics following Cameco Corp’s (NYSE:CCJ) McArthur River mine being placed into permanent care and maintenance.

Just as the share price sailed through 7.5 cents, Munro said RCF, which held 28%, started selling on-market.

Through a series of notifications, RCF advised that its shareholding was depleted to 18%.

 

Munro said, “The Bannerman share price was remarkably resilient during the period, generally holding firm around 6 cents despite more than 90 million shares being pushed out in only a month.

“The market will watch keenly for a potential re-rate now that the overhang is removed. 

“Further, the uranium price is up since the selling suppressed the BMN share price and, with BMN’s share price tracking closely to uranium, the company is keen to close that gap.”

Etango is principal asset

Bannerman’s principal asset is its 95%-owned Etango project in Namibia, near Rio Tinto plc’s (LON:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and CGNPC’s Husab uranium mine.

A definitive feasibility study has confirmed the viability of a large open pit and heap leach operation at one of the world’s largest undeveloped uranium deposits.

“Grateful for RCF’s long-term support”

Bannerman chairman Ronnie Beevor said, “The company is grateful for RCF’s long-term support from the point of its initial investment in Bannerman in 2008.

“Their subsequent investments have provided funding stability to the company during a very difficult period in the uranium sector.

“This enabled the continued progression of the Etango Uranium Project to its current highly advanced, heavily de-risked and development-ready status.

“A key part of this progression, and one directly enabled by the support of RCF, was the construction and operation of the Etango Heap Leach Demonstration Plant between 2014 and 2017.”

The Etango Heap Leach Demonstration Plant in Namibia.

Beevor added, “Bannerman is very pleased to welcome further institutional investors to its register.

“The Bannerman board and management team will continue to focus on delivering maximum value for all shareholders from its highly endowed and strategically placed Etango Uranium Project.”

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