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- CNOL strategic investment of US$320.4M completed
- CNOL now holds a 45% interest in JVCo, which in turn owns 95% of Etango
- Delivers underlying Etango project economic ownership of 52.25%
- Etango early works tracking in line with budget and schedule
Bannerman Energy (ASX: BMN) has completed the transaction related to its strategic investment and joint venture with CNNC Overseas Limited (CNOL) for the funding, development and operation of the Etango uranium project in Namibia.
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CNOL is a subsidiary of Shenzhen Stock Exchange listed China National Uranium Corporation (CNUC) and part of leading integrated global nuclear utility, China National Nuclear Corporation (CNNC).
Executive chairman, Brandon Munro, said the landmark project funding and joint venture arrangement is a powerful enabler of the successful construction, ramp-up and operation of the Etango uranium project.
“It delivers outstanding alignment between the project partners, including pro rata sharing of any future contributions into the JV, as well as an excellent core offtake arrangement from which to commence future production operations.
“Debt free construction of Etango substantially reduces the financial risk profile during construction and ramp-up, as well as significantly enhancing Bannerman’s overall corporate financial flexibility.
“Finally, we are delighted to have entered a long-term strategic alliance with such a highly respected and proven nuclear operator globally.”
Mr Munro said the Etango early construction works program continues to advance, with strong progress maintained over the course of this year. “Completion of this strategic funding agreement clears the path for targeted FID on Etango before year end, with commencement of full-scale construction set to position it as the next major greenfield uranium project globally to enter production.”
CNUC, vice president. Feng Li, said the successful completion of this cooperation is the result of long-term communication, close collaboration, and, above all, mutual trust between our two teams.
“The Bannerman team has demonstrated professionalism, pragmatism, and commitment throughout the process. The fact that all precedent conditions were fulfilled on schedule is a strong testament to the trust, efficiency, and shared commitment that have characterised our cooperation.
“The Etango Project stands out with its strong resource base, proven and mature mining and processing technologies, and significant potential for follow-up development.
“We are confident that, by combining our complementary strengths in resource development, technology, management, and operations, we can successfully deliver the project on schedule and establish it as a global benchmark of win-win collaboration in the global uranium sector.
“This closing marks not the end of our cooperation, but the beginning of a new and exciting chapter. We look forward to working closely with the Bannerman team to turn our shared vision into reality, create lasting value, and build a successful and enduring partnership.”
BMN was down 4.17% to $3.68 with a Mkt cap of $797.9M.
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