- Bannerman Energy (BMN) raises $40.7 million via an institutional placement with the funds to be used on its Etango-8 uranium mine and the completion of the DFS
- The placement will issue around 185 new shares at an issue price of 22 cents each
- Proceeds from the placement will be used to complete the Etango-8 DFS, front-end engineering and design and detailed design in respect of the planned Etango-8 mine
- In addition to the placement, Bannerman has launched a share purchase plan (SPP) that is set to raise up to $5 million with the same issue price as the placement
- BMN share are down 9.43 per cent, trading at 24 cents
Bannerman Energy (BMN) has raised $40.7 million via an institutional placement, with the funds to be used on its Etango-8 uranium mine and completion of its Definitive Feasibility Study (DFS).
The placement will issue around 185 new shares at an issue price of 22 cents a share, a 17 per cent discount to the last closing price of shares and an 11.3 per cent discount to the five-day volume-weighted average price (VWAP).
Proceeds from the placement will be used to complete the Etango-8 DFS which remains on-budget and on track for completion in Q3 CY22, front-end engineering and design (FEED) and detailed design in respect of the planned Etango-8 uranium mine.
Funds will also be allocated for new opportunities and project financing activities.
“Our ability to quickly commit to these FEED works delivers us maximum project advancement flexibility and provides greater assurance to potential offtake parties, financiers and investors,” Managing Director and CEO Brandon Munro said.
The new placement shares issued are expected to settle on March 31 with allotment expected to occur on April 1.
All new shares will rank equally with existing Bannerman shares.
In addition to the placement, Bannerman has launched a share purchase plan (SPP) to provide eligible Bannerman shareholders in Australia and New Zealand on its register as of March 23 to acquire up to $30,000 worth of new shares.
The SPP will have the same issue price as the placement and will also rank equally with existing Bannerman shares and is not underwritten.
The SPP is expected to raise up to $5 million.
BMN share were down 9.43 per cent, trading at 24 cents as of 12:58 pm AEDT.