Bannerman Energy has entered into a strategic financing agreement with China National Nuclear Corporation (CNNC) for its Etango uranium project.
Australian-listed Bannerman announced the agreement on Thursday.
“We are delighted to be partnering with such a global leader. We also believe this partnership has the potential to deliver substantial technical and economic efficiencies in the construction, ramp-up and operation of Etango,” Bannerman executive chairman Brandon Munro said.
The agreement is in the form of an investment subscription and joint venture with CNNC Overseas Limited (CNOL), a subsidiary of CNNC.
CNOL will invest up to N$5 billion to fund the construction of Etango mine, which will convert into a 43% stake of the mine for CNOL.
The two companies are targeting completing the investment by mid-2026.
Importantly, CNOL is also entitled to 60% of Etango’s production through this agreement to be purchased at a price determined by both spot and term uranium prices.
The remaining 40% of yellowcake produced at the mine will be marketed by Bannerman.
CNNC is already a major player in the Namibian uranium mining sector. It is the majority owner of the Rössing Uranium Mine through its CNUC subsidiary and owns 25% of Langer Heinrich (the other 75% held by Australian Paladin Energy).
“CNOL, as the exclusive vehicle for CNNC/CNUC’s overseas natural uranium business, recognises Bannerman as a valued partner and commends its outstanding professionalism and strong collaborative spirit demonstrated throughout this process.
“It is our distinct pleasure to formalise this strategic partnership, which marks a significant milestone for both CNOL and Bannerman, as well as for Etango,” CNUC vice president Feng Li said.
A different Chinese state-owned company, China General Nuclear Group operates Husab Mine, Namibia’s largest uranium mine.
