ASX-listed Bannerman Energy reported on continued strong progress at its Etango Uranium Project during the quarter, including the execution of a transformational strategic project funding solution.
The Company is advancing towards a targeted positive Final Investment Decision on Etango.
Highlights
Transformational strategic financing
- Attractive and preferred project funding solution resulting from global Etango financing process; facilitates highest forecast risk-weighted value outcome.
- CNNC Overseas Limited (CNOL) strategic investment at completion of up to US$321.5M:
- CNOL to hold a 45% interest in Bannerman UK subsidiary, Bannerman Energy (UK) Ltd (JVCo), which in turn owns 95% of Etango Project.
- Delivers underlying Etango Project economic ownership of 52.25% Bannerman, 42.75% CNOL, with Namibian social welfare organisation One Economy Foundation (OEF) continuing to hold a 5% loan-carried shareholding.
- Key transaction benefits
- Enables debt-free construction of Etango mine – a financing pathway that delivers greater financial and offtake flexibility and with reduced risk.
- Excellent long-term partner alignment – Bannerman and CNOL will each fund post-completion capital expenditure and operating costs of JVCo and the Etango Project pro rata to their respective 55% and 45% equity interests.
- Market-based offtake cornerstone with Tier-1 customer – CNOL to purchase 60% of Etango production, granting significant supply flexibility, with pricing on arm’s-length, market-based terms.
- Long-term strategic partnership with subsidiary of global nuclear giant, CNNC.
- Transaction completion targeted in mid-2026 pending satisfaction or waiver of all conditions precedent.
- Etango early works program to continue through H1 2026, with Final Investment Decision (FID) targeted promptly upon transaction completion.
Etango early works progress
- Early works construction activities tracking to overall budget and schedule:
- Site contractor workforce now over 560 personnel and 500,000 LTI-free hours achieved on the construction to date.
- Bulk earthworks contract progressing well and approx. 66.5% complete, major focus remains construction of heap leach pads and wet plant terraces.
- Blasting, crushing and screening of heap leach drainage aggregate advancing to schedule and on-spec with approx. 24% of total requirement completed.
- Total 5,509m3 of concrete cast as part of Phases 1 and 2A concrete contracts at the primary crusher, stockpile tunnel and fine ore silo. This represents approx. 32% of the volume of concrete to be poured for these packages.
- Detailed design and procurement advancing in-line with schedule requirements.
- Long-term infrastructure and utilities supply activities progressing strongly; Phase 1 of permanent water supply pipeline installation approx. 70% complete.
Corporate and market
- Strong quarter-end cash balance of A$69.9M and liquid assets valued at A$12.7M.
- Early works commitments stand at approx. A$31.4M (at 31 March 2026).
- Long-term uranium price outlook remains strong, with the term price increasing to US$93/lb U3O8 by quarter end.
Bannerman Managing Director and Chief Executive Officer, Gavin Chamberlain, commented:
“Bannerman continued to progress Etango’s early works programme during the March 2026 quarter, with key construction activities, detailed design and procurement advancing in line with schedule and budget. This progress reflects disciplined execution across multiple workstreams as the project advances toward full-scale construction readiness.
“A transformational milestone during the quarter was the announced project funding solution through a strategic partnership with CNNC Overseas Limited (CNOL). This transaction provides a clear, debt-free pathway to development and an expected Final Investment Decision later this year. Put simply, it is the final piece that unlocks the development and operation of the Etango Project.
“Uranium market fundamentals continued to strengthen over the period. While spot pricing remained volatile, long-term price indicators improved, and global policy support is increasingly translating into reactor life extensions, restarts and new build commitments, reinforcing utility focus on long-term supply security.”
