Bannerman Energy Ltd (ASX:BMN, OTCQX:BNNLF, NSX:BMN) is pleased to advise of significant recent progress in the development of its Etango Uranium Project.
KEY OUTCOMES
- Etango mine development continuing, facilitated by recent equity raising and ‘phased greenlight’ approach:
- Front-End Engineering and Design (FEED) and Control Budget Estimate (CBE) completed in June, delivering significant de-risking of project development and execution profile.
- Construction water supply and site access road early works completed in July – safely, on time and on budget.
- Key 24-month bulk earthworks and construction power contracts awarded.
- Tertiary crusher (HPGR) order placed and manufacture commenced; plant detailed design work advancing.
- Ongoing advancement of early works construction and long lead orders.
- Etango financing process advancing across both project/corporate debt as well as potential offtake and joint venture opportunities with strategic counterparties.
- Long term contracting price continues to build, with tightening supply and rising demand aligned with renewed interest in nuclear power.
- Commitment to maximising Etango’s leverage to long-term uranium market fundamentals by targeting offtake contracts that capture the full value of long-term producer opportunity.
- Window for targeted positive Etango Final Investment Decision (FID) expanded into 2025.
“I am pleased with the progress of our current early development works program. Our contract partners have performed strongly and delivered their scopes effectively, with completion of the initial construction water supply and site access road facilities earlier this quarter. We continue to exercise a gated approach to Etango development, with phased green lighting of various construction works in-line with advancement across broader project workstreams and financial capacity. This enables us to maintain critical path timelines whilst also allowing robust management of execution and market risks.To this end, our recent equity raising has facilitated a rapid transition into the next phase of long lead order and critical path contract awards for Etango. The bulk earthworks contract comprises a large, lengthy body of work, the commencement of which maintains the Etango mine construction timeline. The same goes for the commencement of manufacture of key plant items, including the High-Pressure Grinding Rolls (HPGR), a key component of the Etango plant front-end. The Etango financing progress is also advancing, comparing a broader range of conventional and strategic funding opportunities that reflect growing interest in long-term uranium supply. With our current robust cash balance, we can take the appropriate time in this area to ensure the optimal overall funding mix is delivered – a key differentiating feature compared to many developers. I am also pleased to see long term contract markets firming further over the last few months. While the market continues to come to us in this sense, it is also an excellent reminder that the judicious exercise of patience can bring its rewards. Again, we have the financial runway to progress development while ensuring our initial offtake contract book is established on terms that are truly representative of long-term uranium market fundamentals – a strategy that we are firmly committed to implementing.”
Gavin Chamberlain - Chief Executive Officer, Bannerman Energy Tweet
The full announcement can be downloaded here.