Bannerman acquires equity partner

Bannerman Mining Resources Namibia has announced its partnership with the One Economy Foundation, providing the opportunity for the not-for-profit organisation to gain a 5% shareholding in Bannerman Resources Namibia.

RMB Namibia was engaged by Bannerman in August 2016 to identify charitable and financial investors in the Etango Project, culminating in the partnership with the One Economy Foundation. ENS Africa were the legal advisors to the transaction.

Local ownership is a key pillar of Bannerman's corporate social responsibility in Namibia, and a vital means of addressing the government's Harambee Prosperity Plan and its aim to eradicate poverty, the company said.

“Growth in the mining sector is critical to Namibia's economic and social development. Therefore, I applaud this partnership between Bannerman Resources and the One Economy Foundation as a strong example of how the benefits of mining can be used to achieve our aim of social progression across all sectors of our society,” said Obeth Kandjoze, minister of mines and energy.

Under the terms of the agreement, Bannerman Mining Resources will issue 5% of its ordinary share capital to the One Economy Foundation at par value. The One Economy Foundation will be loan carried for all future project expenditure including pre-construction and development expenditure, with a proportion of future dividends used to repay the loan and the balance providing cash to fund the foundation's activities.

Werner Ewald, managing director of Bannerman Mining Resources (Namibia), said: “Since 2006, Bannerman has invested N$600 million developing its Etango Project, so a 5% shareholding has an immediate and substantial value.

“By providing this shareholding at par value (effectively free) Bannerman is demonstrating its strong endorsement and belief in the One Economy Foundation and what it can achieve in the longer term. Once developed, Etango will be a very large and long-life mine, thus providing the foundation with an opportunity for a long-term source of income to implement sustainable social development projects that we all feel passionate about.”

Twapewa Kadhikwa, non-executive director of Bannerman Mining Resources, said: “It is a huge privilege to join hands with the One Economy Foundation as long-term equity partners in Bannerman's Etango Project. The foundation's mission, approach and energy are closely aligned with Bannerman's outstanding record as a leader in corporate social responsibility in Namibia.

“We passionately support the Namibian government's poverty eradication objectives under the Harambee Prosperity Plan and this new partnership will deliver on the role the Ministry of Mines and Energy expects us to play and fulfil.”

One Economy Foundation's chief executive officer, Uajorokisa Akwenye, said: “The Etango Project has the potential to be a significant driver for positive development in the Namibian economy and it is exciting to have the One Economy Foundation's objectives aligned with its long-term success. I am immensely proud of the vision and approach that the One Economy Foundation has developed, and I am delighted that Bannerman has endorsed our approach with this partnership.”

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