The AU$8 million will be used to further Bannerman’s Etango uranium project in the southern African nation of Namibia.
Bannerman Resources Limited (ASX:BMN,NSX:BMN), announced that it has received commitments to raise AU$8 million gross proceeds through the placement of 173,913,043 new Bannerman shares at an issue price of AU$0.046 per share. The placement was made to both institutional and sophisticated investors. Bannerman is a uranium mining and exploration company based in Australia with ongoing projects in Namibia.
As quoted from the press release:
The placement price of AU$0.046 per share represents a 9.2 percent discount to the 10-day volume weighted average price of Bannerman shares up to and including Tuesday (June 5, 2018).
Funds raised from the Placement will be used to further optimization opportunities at the Etango Project (targeting reduced operating and capital cost estimates), progress the current definitive feasibility study (DFS) update, continue product marketing and for general working capital and corporate purposes (including financing and offtake initiatives).
The DFS update will incorporate, to a definitive level, improvements to the 2012 DFS that have been identified in the mining optimization study (2015), processing Optimization Study (2017) and Membrane Study (2018). It will also include additional optimization initiatives planned to be undertaken over the next 6-12 months.
“I am delighted with the strong level of support shown from existing shareholders in the equity raising. I am also pleased to welcome more than a dozen new institutional investors onto the Bannerman register,” said Bannerman’s CEO, Brandon Munro.