Subiaco-based uranium explorer Bannerman Energy has successfully rattled the tin for $85 million from investors amid the latest surge of market interest in juniors trying to develop projects for the nuclear fuel.
New and existing institutional and sophisticated investors signed up for 25.8 million new Bannerman shares under the two-tranche placement, which had new stock on offer at $3.30 apiece. The offer price is a 7.8 per cent discount on the explorer’s last close.
The cash boost will lift Bannerman’s bank balance to about $100 million and will go towards early construction works for its Etango-8 uranium project in Namibia.
Bannerman has estimated the project will be in production by the end of 2026 to early 2027 and is targeting throughput of 8 million tonnes per annum.
Executive chairman Brandon Munro on Friday confirmed construction was under way and lining up long-lead items would be next. He was upbeat about buoyancy in the uranium market.
“We are excited by the support that we have received from investors for both our Etango-8 development pathway and the approach the company has taken to stewarding this asset into the rapidly strengthening uranium market environment,” he said.
A final investment decision on Etango-8 is expected in the next six months. Bannerman shares were down more than 7.2 per cent at 8:07am AWST to $3.32.
Recent data compiled by accounting firm BDO revealed uranium had beaten gold as the most sought after commodity based on capital raisings in Australia.
About $323.2 million was raised by uranium explorers in the March quarter of 2024, beating gold’s $293.5m. Lithium raised just $50.7m.