Etango nears investment go-ahead

Bannerman Energy says it expects to make a final investment decision (FID) on its Etango Uranium Project later this quarter after making further progress towards completing a strategic financing agreement worth up to US$321.5 million (N$5.4 billion) with China's CNNC Overseas Limited (CNOL).

The company said the remaining conditions required to complete the transaction are expected to be met during the third quarter of 2026, after which it intends to take a positive FID on the project.

The financing agreement, announced in February, will see CNOL acquire a 45% stake in a joint venture that owns a 95% interest in the Etango project. The deal provides Bannerman with an equity-funded route to construction rather than relying on significant debt, while securing a long-term buyer for 60% of the mine's uranium production.

Investment decision in sight 

Managing director and chief executive Gavin Chamberlain said the company was also making good progress towards completing the CNOL investment.

"Our engagement with CNOL has been highly constructive and collaborative, reinforcing the strong alignment between the parties and our shared commitment to the successful development of Etango."

Chamberlain added that the project was steadily approaching a major milestone.

"With the project footprint increasingly visible on site, engineering and infrastructure activities advancing to plan, and a clear pathway towards transaction completion and FID, Etango continues to build momentum from a position of strong project readiness."

The proposed Etango-8 development is designed to produce an average of 3.5 million pounds of uranium oxide annually over an initial 15-year mine life.

On track, on budget, going according to plan

Meanwhile, early construction activities continue to gather pace, with the project continuing to advance according to plan, Chamberlain said. 

Bannerman said more than 560 workers are now on site, with bulk earthworks approximately 92% complete, while about 60% of the concrete planned for the first construction phases has already been poured. Engineering, procurement and infrastructure works are also progressing on schedule, including the permanent water supply pipeline, which is around 87% complete.

"The June quarter further demonstrated the discipline and methodical approach being applied to the development of Etango. Early works continue to track to the overall schedule and budget, reflecting the capability of our project team and contractors."