Bannerman Resources Ltd (ASX:BMN; NSX:BMN) continues to be well supported by the investment community, and will now raise $8 million in a heavily oversubscribed placement at 4.6 cents.
Adding interest, the equity raising attracted over a dozen new institutional investors.
Since Brandon Munro was appointed chief executive officer just over two years ago, the institutional component of the Bannerman register has increased to over 11% from 4%.
With this raising, Bannerman has positioned itself to require no further funding until a final investment decision, should current uranium price momentum continue into a sector correction.
This amount enables the company to continue adding NPV to Etango through optimisation initiatives, complete the Definitive Feasibility Study Update (DFS) and proceed to offtake and financing.
Given the perception of being “cum raise” appears to have weighed on Bannerman’s share price for some time, this is a paradigm shift that will serve investors well.
What to look out for from the DFS Update
The DFS Update will incorporate, to a definitive level, improvements to the 2012 DFS that have been identified in the Mining Optimisation Study (2015), Processing Optimisation Study (2017) and Membrane Study (2018).
It will also include additional optimisation initiatives planned to be undertaken over the next 6-12 months.
Uranium price and key catalysts
The uranium price has been nudging higher in recent weeks, and is now around US$24 a pound, or about 15% higher than in mid-April.
READ: Brandon Munro has outlined his key catalysts in his online blog
The potential of Etango
The Etango project hosts a resource of 271 million pounds of uranium, and is the largest advanced, unaligned uranium project in the world.
Etango is located in Namibia, a premier uranium jurisdiction, with a +40 year production history.
The country is politically and socially supportive of the sector, is stable and secure with a strong rule of law, with all key infrastructure in place.
Etango is situated near Rio Tinto Ltd's (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd's (ASX:PDN) Langer Heinrich uranium mine and CGNPC’s Husab uranium mine.