Namibia – Triple-listed uranium company Bannerman Resources has confirmed that it is debt free and funded for the operation of the demonstration plant at the Etango uranium project, following the completion of the transactions that shareholders approved at the company’s Extraordinary General Meeting held on 29 December 2015.
Bannerman extinguished the A$12 million convertible notes through the conversion of $8 million of the convertible notes held by RCF into Bannerman shares at the given conversion price of A$0.075 per share, as well as the sale of a 1.5% royalty over the Etango project to RCF for $6 million, comprising $2 million in cash and extinguishment of the residual convertible notes held by RCF (comprising A$4 million); and $3 million capital raising through an equity placement of approximately 63.3 million new Bannerman shares to RCF VI at A$0.0474 per share.
The meeting also saw Bannerman acquire the outstanding 20% in the project, from the current owners for payment of approximately 123.4 million new Bannerman shares and $1 million in cash, which means the project is now fully-owned by Bannerman.
Bannerman Resources CEO Len Jubber said that completion of the corporate restructuring, closely following on from the definitive feasibility study optimisation study released in November significantly enhances the company’s early mover advantage at a time that the global focus is once again focused on the need for more clean energy.
“In addition to the greater economic interest, consolidation of the holding structure is expected to provide considerable structural benefits when project financing is sought for development of Etango. The transactions with RCF deliver us a debt free balance sheet with new funding for 2016 that allows Etango to be taken to the next stage,” he said.
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