Bannerman Energy has successfully completed a major financing milestone with China’s CNNC Overseas Limited (CNOL), raising US$320.4 million to advance the Etango uranium project in Namibia ahead of a targeted final investment decision by the end of 2024.
On 24 September, CNOL injected US$294.5 million into the Etango joint venture company, alongside an additional US$25.9 million paid directly to Bannerman to reimburse project expenses incurred since July last year. This transaction grants CNOL a 45% stake in Bannerman Energy (UK) Ltd., the joint venture holding 95% of the Etango project, while Bannerman retains the majority 55% ownership.
At the project level, ownership is distributed as follows: Bannerman 52.25%, CNOL 42.75%, and Namibia’s One Economy Foundation 5% (loan-carried). This deal significantly improves the project’s funding position, setting the stage for a final investment decision and full-scale construction planned for the fourth quarter of 2026.
The financing structure enables Etango to be developed without relying on commercial debt, with the joint venture now holding approximately US$303 million in cash, including around N$140 million in Namibia. Bannerman, listed on the Australian stock exchange, confirms it is fully funded for its share of working capital through construction, ramp-up, and into commercial production, with a pro-forma cash balance estimated at about A$174 million (excluding liquid investments and joint venture cash).
Importantly, the deal also secures a major long-term customer for Etango’s uranium output. Under the shareholders’ agreement, CNOL is entitled to purchase 60% of the project’s yellowcake production over its lifetime, while Bannerman manages marketing of the remaining 40%. Pricing will be linked to spot and term uranium price indices, reviewed every five years after production begins, with a binding offtake agreement expected before production starts.
This partnership strengthens China’s influence in Namibia’s uranium sector through CNOL, a subsidiary of China National Uranium Corporation (CNUC), itself controlled by China National Nuclear Corporation. CNUC already holds significant stakes in other Namibian uranium projects including Rössing Uranium and Langer Heinrich, and Etango will add to this portfolio if mining proceeds.
Despite CNOL’s substantial stake, Bannerman retains majority control and significant management rights, including appointing three of five joint venture directors and key senior management positions. However, major strategic decisions require unanimous approval, ensuring joint agreement on critical matters such as funding, development, expansion, and the final investment decision.
Bannerman Executive Chairman Brandon Munro highlighted the transaction’s importance: “Completion of this strategic funding agreement removes a major hurdle ahead of the project’s investment decision. Early construction works are progressing well, and this deal paves the way for Etango to become the next major greenfield uranium project globally to enter production.”
CNUC Vice-President Feng Li described the closing as the start of a promising partnership, stating, “This marks not the end of our cooperation, but the beginning of a new and exciting chapter.”
With early construction on track and all necessary mining and environmental approvals secured, Bannerman now focuses on the final investment decision and the commencement of full-scale construction scheduled for late 2026. The existing definitive feasibility study supports a processing operation producing an average of 3.5 million pounds of uranium oxide annually, with ongoing studies exploring expansion to 6.7 million pounds per year.
The strategic funding deal with CNOL marks a critical milestone, enabling Bannerman and its partners to move decisively toward bringing Etango into production and contributing significantly to the global uranium supply.
